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Derivatives




Net Position


The difference between the open long contracts and the open short contracts a trader holds in a specific instrument or asset. For example, if a trader has 10 long contracts (say long futures) on 2 January and 6 short contracts (short futures) on 3 January, the net position of the trader on 3 January is:

Net position= open long contracts – open short contracts

Net position= 10 – 6 = 4



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Derivatives have increasingly become very important tools in finance over the last three decades. Many different types of derivatives are now traded actively on ...
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