Hedgers Outweigh Speculators in Energy Futures Markets, Stabilizing Prices.
The study looked at whether people trade energy futures contracts to protect against risk or to make speculative bets. By analyzing trading volume and price changes, the researchers found that hedgers, who use futures to manage risk, are more active than speculators in these markets. Hedging seems to be the main reason for trading energy futures contracts, which helps allocate risk and stabilize prices in the spot market.