A long position in the futures market

Knowing that you will need the corn at a later date and wanting to protect against a price increase, you take a long position in the futures market. Over the next 

delivery. It is this type of hedge, in which futures positions are liquidated by position (either short or long) in both the spot and futures markets.5. 5Since one  Let's say a five-contract futures position is initiated at 89.65¢ per pound and the market rises to 91.30¢ per pound on the following trading day. • For the long  A trader who has a long or short position in a futures contract can terminate the contract This lesson is part 5 of 6 in the course Futures Markets and Contracts. Speculating and short selling possibilities. If you believe that the price of gold will rise, you can make a profit by taking a long position in the Gold Futures market. Cost of carry is the interest cost of a similar position in cash market and carried to maturity of the futures contract less any dividend expected till the expiry of the 

The futures trader stands to profit as long as the underlying asset price goes down. The formula for calculating profit is given below: The value of a short futures position is marked-to-market daily. Gains are credited and losses are debited from the future trader's account at the end of each trading day.

Long position in commodity futures trading conveys the buying of any commodity first with the expectation of rise in value of that commodity. This can be done by entering into any commodity The futures trader stands to profit as long as the underlying asset price goes down. The formula for calculating profit is given below: The value of a short futures position is marked-to-market daily. Gains are credited and losses are debited from the future trader's account at the end of each trading day. This is different from going long by buying the underlying or trading in futures, because a long position in an option does not necessarily mean that the holder will profit if the price of the underlying instrument goes up. Going long in an option gives the right (but not obligation) for the holder to exercise it. Net long refers to a condition in which an investor has more long positions than short positions in a given asset, market, portfolio or trading strategy . Investors who are net long will benefit Long call option positions are bullish, as the investor expects the stock price to rise and buys calls with a lower strike price. An investor can hedge his long stock position by creating a long

With stock market futures, you can make money even when the market goes down. Here's how it works. There are two basic positions on stock futures: long and 

Find out what the trading terms long and short mean. at a higher price in the future and realize a profit.2 A short trade is initiated by selling, before buying, The term often is used to describe an open position, as in "l am long Apple," which 

A trader who has a long or short position in a futures contract can terminate the contract This lesson is part 5 of 6 in the course Futures Markets and Contracts.

Get details about long position build up for Index Option. Stay up to date on News & FIIs Trends in Derviatives - Index Futures & Options, Stock Futures & Options 

Much of the non-hedging activity in the futures markets involves spread trades (also called straddles). These strategies generally carry less risk than outright long or short positions; hence, they usually have lower margin requirements. Spreads involve the simultaneous buying and selling of futures contracts with different characteristics.

delivery. It is this type of hedge, in which futures positions are liquidated by position (either short or long) in both the spot and futures markets.5. 5Since one  Let's say a five-contract futures position is initiated at 89.65¢ per pound and the market rises to 91.30¢ per pound on the following trading day. • For the long  A trader who has a long or short position in a futures contract can terminate the contract This lesson is part 5 of 6 in the course Futures Markets and Contracts. Speculating and short selling possibilities. If you believe that the price of gold will rise, you can make a profit by taking a long position in the Gold Futures market.

Position Limits; Understanding (and Managing) the Risks of Futures Trading; Choosing a Futures Contract; Liquidity  For example, if a stock position has doubled in value and you believe it will rise further, implement a hedging strategy to protect your profits from market volatility. Long Position: Buying a future contract causes a long position in that contract, which binds the holder of the position (long party) to buy the underlying asset at