The idea that speculation exacerbates commodity and stock price volatility dates back at least from the second half of …, originally applied to commodities and subsequently extended to securities, was that speculation is mostly beneficial …. Professional speculation improves resource allocation by reducing the size (if not frequency) of price fluctuations, enabling …

common practice of categorically classifying trading by hedgers as hedging while trading by speculators as speculation, as … speculation …

This article compares traditional hedging that aims at covering spot price risk and selective hedging that also … reduce risk. An out-of-sample analysis applied to 24 commodities endorses traditional hedging on both accounts which can be …