Futures contract positions
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Can you please explain how purchasers of financial futures contracts can offset their position, and how is their gain or loss determined? What is the maximum loss to a purchaser of a futures contract?
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The expert provides calculations of gains and losses resulting from trading futures
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A futures contract involves a commitment to buy or sell a financial instrument at a given time. The position in the stock market and thus be offset by purchasing futures contract to sell a the stock. If you own 100 shares of stock, and purchase a contract to sell the shares at $10 per share, then you can limit ...
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