This study examines whether hedging or speculation is the principal motive behind trading in energy futures markets. This question is important since facilitating risk allocation is considered to be one of the main benefits of the futures markets, while excess speculation in futures markets...

We examine the volume-volatility relation, which has previously been reported as positive in many markets, for the emerging market of Taiwan. Our findings suggest that the positive volume-volatility relation is driven entirely by daily number of trades. In fact, we observe a negative relation...