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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References in periodicals archive ?
Significantly, this is India's first crude oil options contract and on its expiry, the open position will devolve into the respective underlying futures position.
Instead, elevators should consider using basis-sale contracts and maintaining a short futures position, which will protect them from most of the counterparty risk resulting from price swings.
In May, the FSA banned a former Morgan Stanley trader who built up a hefty unauthorised oil futures position following a long liquid lunch, before hiding the deals overnight.
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.
If the market prices increase, higher ingredient costs will be effectively decreased due to the loss on the futures position. Regardless of the directional change in price, the same price level has been established.
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.
The gains and losses on the futures position should mimic those of an index portfolio.
The short dashed line sloping down and to the left represents the loss potential of holding a long futures position at $2.40 per bushel.
At all times during a hedge, your position in the futures position will be opposite the position in the cash market.