Learn what offsetting futures contracts mean and what happens when a futures contract is offsetted.
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Offset is the transaction of a reversing trade on the exchange. If you are short 20 March soybean futures traded on the Chicago Board of Trade, you can close the ...
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Rather, the vast majority of speculators in futures markets choose to realize their gains or losses by buying or selling offsetting futures contracts prior to the ...
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Covered position: A transaction which has been offset with an opposite and equal transaction; for example, if a gold futures contract had been purchased, and ...
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Futures contracts can be terminated by an offsetting transaction (i.e., an equal and opposite transaction to the one that opened the position) executed at any time ...
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Any futures transaction that is carried as a CME trade by an FCM ...
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May 14, 2008 ... Offsetting is eliminating the obligation to make or take delivery of a commodity by liquidating a purchase or covering a sale of futures. This is ...
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Margin (finance) - Wikipedia, the free encyclopedia
en.wikipedia.org/wiki/Margin_(finance)
Margin requirements are reduced for positions that offset each other. For instance spread traders who have offsetting futures contracts do not have to deposit ... |
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Most futures contracts (by volume) are liquidated via offset and do not result in delivery. The purpose of the physical delivery provision is to ensure convergence ...
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The second step in the process occurs when the cash market transaction takes ... The 30-cent gain in the futures market offsets the lower price he receives for his ...
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