Approximately what percentage of futures contracts is closed by offset before the contract expires:
A)25.
B)50
C)95.
D)75.

Question

Quizplus · Accepted Answer

According to industry data, approximately 95% of futures contracts are closed by offset before the contract expires. This means that the majority of futures traders are not actually planning to take physical delivery of the underlying asset, but are instead using futures as a tool for speculation or risk management.

Approximately What Percentage of Futures Contracts Is Closed by Offset