We examine the volatility-volume relation in futures markets using volume data categorized by type of trader. We find that the positive volatility-volume relation is driven by the general public, a group of traders who are distant from the trading floor and therefore without precise information...

We examine the volatility-volume relation in futures markets using volume data categorized by type of trader. We find that the positive volatility-volume relation is driven by the general public, a group of traders who are distant from the trading floor and therefore without precise information...

This paper examines the volume-volatility-type of trader relationship by employing daily volume of five futures contracts segregated into four types of traders. This breakdown of total volume into its components allows us to test whether one or more groups can be associated with the level of...