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
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2
Q

Futures vs forward contracts

A

Forwards - OTC (not through exchange )

Mostly foreign exchange

Futures - Exchange traded

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3
Q

Futures Contracts

A

Nothing bought or sold today

terms and conditions fixed today - transaction completed later

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4
Q

Flat Position

A

No position

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