I have been trying to wrap my head over this question but just cannot do so. Try googling stock index futures hedging and all the search results will tell you hedgers sell index futures contracts for hedging purposes. Most people own shares, so hedging means they sell futures contracts. So, who are the hedgers who buy index futures?
In a bear market, speculators will sell index futures. Hedgers always seem to sell index futures anyway. So, in a bear market, who are buying index futures? Are…