The buyer of a futures contract is said to have a __________ position, and the seller of a futures contract is said to have a __________ position in futures.

Question

Quizplus · Accepted Answer

The term "long" refers to an investor who buys a futures contract with the expectation that the price will increase in the future. Therefore, the buyer of a futures contract has a "long" position. On the other hand, the term "short" refers to an investor who sells a futures contract with the expectation that the price will decrease in the future. Therefore, the seller of a futures contract has a "short" position.

The Buyer of a Futures Contract Is Said to Have