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