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Spot contract

About: Spot contract is a research topic. Over the lifetime, 3437 publications have been published within this topic receiving 91599 citations.


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Journal ArticleDOI
TL;DR: In this article, the authors analyzed the evolution of hard coal trade in West-Europe, known as the Atlantic market, from the 1980s to the end of 2002, and investigated the development of trade pattern, nature of contracts, price setting, supply-demand and the future of trade.

24 citations

Journal ArticleDOI
TL;DR: In this article, the authors examined the impact of the introduction of futures trading in the British maincrop potato market over the period 1969-96 in a "before-after" analysis.
Abstract: Futures markets, where they exist, can play a crucial role in determining the storage decision in the underlying spot (physical) market. The futures market acts as a conduit for market information and is a gatherer of agents' expectations about the future prospects for the spot market. As such, it is able to provide both price insurance and price discovery roles, the latter of which generates information for spot market traders and allows them to make rational storage decisions. If this were to be the case, then the efficiency of storage is improved which can potentially lead to a reduction in the volatility of spot prices over the marketing season. The existing literature is ambiguous as to whether futures markets can help spot markets price more efficiently. This paper seeks to examine whether this is the case in the British maincrop potato market by evaluating the volatility of spot prices over the period 1969–96 in a “before-after” analysis of the impact of the introduction of futures trading in 1980. The results suggest that the introduction of the futures market has led to a reduction in price volatility, despite some problems in the operation of the futures market itself.

24 citations

Journal ArticleDOI
TL;DR: In this article, the authors developed a new approach to understand the behavior of high frequency electricity spot prices, which treated electricity delivered at different times of the day as different commodities, while recognizing that these commodities may be traded on a small number of intra-day markets.
Abstract: In this paper we develop a new approach to understanding the behavior of high frequency electricity spot prices. It treats electricity delivered at different times of the day as different commodities, while recognizing that these commodities may be traded on a small number of intra-day markets. We first present a detailed analysis of the high frequency dynamics of prices at a key New Zealand node. Our analysis, which includes the use of a periodic autoregression model, supports the treating of electricity as multiple commodities and also reveals intrinsic correlation properties that indicate the existence of distinct intra-day markets. Conventional models cannot adequately capture properties that have important implications for derivative pricing and real options analysis. We therefore extend the literature by introducing a state space model of high frequency spot prices that preserves this intra-day market structure.

23 citations

Journal ArticleDOI
TL;DR: The authors empirically examines relationships and dynamics between the price of three crude oil benchmarks, namely the WTI, Brent, and Oman, and finds that a long run relationship exists between the pairs (WTI-Brent and WTI-Oman) of spatially separated spot markets.

23 citations

Journal ArticleDOI
TL;DR: In this article, the authors analyzed the possible relationship between wheat futures prices and spot oil prices considering the importance of the effects of temporal aggregation and alternative model specification for the understanding of the empirical relationships between the two markets.

23 citations


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Performance
Metrics
No. of papers in the topic in previous years
YearPapers
20241
202376
2022205
2021111
2020115
2019106