Reading...
Play button
Play button
Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
6 Cards in this Set
- Front
- Back
|
Future contracts
|
Delivery of commodities, financial assets
Delivery or settlement in cash |
|
|
Future vs forward
|
More liquid
trade on exchange can be closed out by offsetting trade No counterparty risk, clearinghouse is counterparty Lower transaction costs Require margin deposit, markets to market daily Standardized contract |
|
|
Limit up
|
No trades will take place above the price limits
|
|
|
Locked limit
|
No trade can take place between the price limits
|
|
|
Offsetting futures position
|
Enter into opposite position
Cash payment at expiration delivery of asset exchange for physicals |
|
|
Currency futures
|
Delivery of standardized amounts of foreign currency
|
