The Anti-Speculation Cycle, Managing Commodity Risk, and Position Limits
10 Pages Posted: 22 May 2015
Date Written: March 2013
Market participants have an obligation to periodically explain the economic role of futures trading and the role of speculators in these markets. This will be the main task of this paper. In addition, this paper will discuss two other challenges in the commodity markets: the impact of the Risk On/Risk Off (RORO) environment in managing commodity risk, and the prospects for the imposition of commodity position limits.
Keywords: Commodity markets, hedgers, speculators, futures markets, risk, position limits
JEL Classification: G1, G11, G18
Suggested Citation: Suggested Citation