Futures Position

Futures Position

The state of owning or owing a futures contract, which is an agreement to buy or sell an asset at a certain date at a certain price. One has a long futures position when one owns a contract, while one has a short position when the contract is sold, especially sold short.
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It is stated that an EFP is a transaction include the simultaneous exchange between two parties of a futures position and its underlying asset(s).
His responsibilities include both assisting in the purchase of green coffee and management of S&D's futures position.
In order to cancel its futures position at the end of each quarter, the company sells the same number of contracts that it bought in January for that particular quarter, thus canceling its position in a Peter-pay-Paul manner.
A long futures position can be thought of as agreeing to pay f in exchange for receiving the underwriting loss ratio on the pool of policies comprising the index.
First, an option seller assumes the risk that the option will become valuable -- which, when exercised, results in an unfavorable futures position for the seller.
For example, the value of the Long S&P 500 Futures Positions (which generally will be up to 60% of the Fund's net asset value) may decline in value due to a decline in the level of the S&P 500, while the value of the Short S&P 500 Futures Position (which generally will be up to 40% of the Fund's net asset value) may decline in value due to an increase in the level of the S&P 500.
Let's examine the feasibility of writing calls against the futures position to capture some additional upside potential, while at the same time protecting against a possible decline.
Occasionally a trader who intends to take a position in the futures market, either as part of a hedging or a speculative strategy, may find that he can construct an identical position in the options market, and at the same time do so at a more favorable price than the futures position.
Under certain market conditions, it may be difficult or impossible to liquidate an exchange-traded futures position.
Credit Suisse Onyx now allows clients to roll their futures position while maintaining only their intended risk exposure.
An EFR is an ex-pit transaction that involves the exchange of a futures position for an over-the-counter (OTC) position.
Late last week, Apache eliminated its exposure to this marketing anomaly by closing out its February futures position and limiting its remaining hedge positions to amounts approximating production volumes deliverable to the Northeast.