Abstract: This study explores the relationship between the capital gains and inventory in the aluminum market. We provide analytical evidence concerning how the increase in opportunities for speculative incentives from aluminum inventories caused an…
This article tackles the issue of rational destabilization in the commodity markets. The theoretical framework is a three-period model with futures positions revised within the intermediate holding period of the spot market. Technical traders enter…
In the commodity markets, consumers, producers, and investors will occasionally lose out on positions in the futures and options markets. Very large losses in commodity trading can weaken the trust of brokers, exchanges, regulators, and other social…
This article presents a model for the determination of crude oil futures price that focuses on the activities of arbitragers and speculators. Arbitragers, who exploit cost of carry deviations, rely (in part) on commodity convenience yield to identify…