The seller of a futures contract is said to hold a:
A) Long position
B) Long position if the position is producing a net loss
C) Short position
D) Short position if the position is producing a net loss
E) Market position

Question

Quizplus · Accepted Answer

The seller of a futures contract is said to hold a short position, as they are selling a contract they do not currently own. A long position would refer to the buyer of the contract. The terms "net loss" and "market position" are not relevant to determining the position of the seller of a futures contract.

The Seller of a Futures Contract Is Said to Hold