Questions and Answers
What is an open position in the context of derivative contracts?
A position where the investor holds both long and short positions in different contracts
What does a naked position in the futures market refer to?
A position where the investor holds a position in futures without holding the underlying asset
What is a calendar spread position in futures trading?
A position where the investor holds a long position in one maturity contract and a short position in another maturity contract
When does a calendar spread position become an open position?
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In futures trading, what is the term used to describe settling gains or losses each day?
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If an investor shorts 8 contracts on Company A and goes long on 5 contracts of Company B, what type of position does the investor have?
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What does opening a position refer to in trading?
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In futures contracts, how are the terms of the contracts typically set?
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What is the counter-party in futures contracts?
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How does liquidity in futures contracts compare to forward contracts?
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What is the primary factor that distinguishes opening a long position from opening a short position?
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What is the key difference between initial margin and mark-to-market settlement in futures contracts?
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What is the meaning of a 'long position' in the derivatives market?
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If a trader buys 3 contracts of Gold futures, what type of position does the trader hold?
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How is the price band for a futures contract determined on the first trading day?
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What does a 'short position' refer to in the derivatives market?
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In futures trading, what is the term used for outstanding/unsettled sell positions?
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