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Futures Position

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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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Under this scenario, the elevator would have a short futures position at $5.
A couple weeks I ago, I told you commercial gold traders, otherwise known as "the smart money," had amassed the largest short gold futures position of the past several years.
However, commercial petroleum firms were taking no chances, maintaining slight futures positions to hedge against negative price movements.
 
 
 
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