TY - JOUR
T1 - Why do hedgers trade so much?
AU - Cheng, Ing Haw
AU - Xiong, Wei
N1 - Publisher Copyright:
© 2014 by The University of Chicago. All rights reserved.
PY - 2015
Y1 - 2015
N2 - Futures positions of commercial hedgers in wheat, corn, soybeans, and cotton fluctuate much more than expected output. Hedgers’ short positions are positively correlated with price changes. Together, these observations raise doubt about the common practice of categorically classifying trading by hedgers as hedging while classifying trading by speculators as speculation, as hedgers frequently change their futures positions over time for reasons unrelated to output fluctuations, which is arguably a form of speculation.
AB - Futures positions of commercial hedgers in wheat, corn, soybeans, and cotton fluctuate much more than expected output. Hedgers’ short positions are positively correlated with price changes. Together, these observations raise doubt about the common practice of categorically classifying trading by hedgers as hedging while classifying trading by speculators as speculation, as hedgers frequently change their futures positions over time for reasons unrelated to output fluctuations, which is arguably a form of speculation.
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U2 - 10.1086/675720
DO - 10.1086/675720
M3 - Article
AN - SCOPUS:84925046540
SN - 0047-2530
VL - 43
SP - S183-S207
JO - Journal of Legal Studies
JF - Journal of Legal Studies
IS - S2
ER -