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Derivatives




OTE


It stands for open trade equity; this refers to the unrealized gain or loss on open positions in futures. That is, an OTE is the net of unrealized profits and losses on positions that are not yet closed out. It is measured as the difference between the initial trade price and the last tick of the market. This represents the value of the futures positions held by an investor, should the positions be closed at the last tick. This value is marked to market.



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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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