Ignoring any third-party commissions, the profit one party earns in a futures contract equals the loss the other party suffers.

Question

Quizplus · Accepted Answer

This statement is true because futures contracts are zero-sum games, meaning one party's gain is equal to the other party's loss. The profit or loss is determined by the difference between the contract price and the market price at the time of settlement. Therefore, ignoring any third-party commissions, the profit one party earns in a futures contract equals the loss the other party suffers.

Ignoring Any Third-Party Commissions, the Profit One Party Earns in a Futures