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).
But holding a futures position (long or short) beyond its maturity is also possible.
covered option writing--selling call options with the ownership of a long futures position and put options with the ownership of a short futures position.
His responsibilities include both assisting in the purchase of green coffee and management of S&D's futures position.
This long futures position is a temporary position that protects the price you will eventually pay to your supplier for delivery of the ingredients.
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.
At expiration the holder of a long futures position will become the fixed rate receiver and floating rate payer in an OTC interest rate swap cleared by CME Clearing.
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.
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.