Futures Flashcards
1
Q
Futures
A
Refers to exchange traded agreement
Agreement to buy or sell
- specified quantity
- specified asset
- specified future date
- at price agreed today
2
Q
Futures vs forward contracts
A
Forwards - OTC (not through exchange )
Mostly foreign exchange
Futures - Exchange traded
3
Q
Futures Contracts
A
Nothing bought or sold today
terms and conditions fixed today - transaction completed later
4
Q
Flat Position
A
No position