Re:Why Peak Oil Will Never Lead To $500/bbl Crude Oil
by yummyfajitas on Monday May 03, 2010 @03:41PM
(#1315852)
Speculators usually earn a premium over what they would get via blind luck. If they didn't, there would be no speculators.
The reason why trades occur at all is that not everyone is a pure trader. Hedgers (e.g. Southwest) trade futures to reduce business risk rather than to make money. They tend to make a net loss on trading but earn back a greater amount of money via their core business.
The reason why trades occur at all is that not everyone is a pure trader. Hedgers (e.g. Southwest) trade futures to reduce business risk rather than to make money. They tend to make a net loss on trading but earn back a greater amount of money via their core business.