Hedging in the futures markets is accomplished by:
A) taking a position opposite to the one already held.
B) taking a position identical to the one already held.
C) taking a position in order to increase the profit potential.
D) taking a position to increase the distribution of returns.

Question

Quizplus · Accepted Answer

Hedging in the futures markets involves taking a position opposite to the one already held in order to mitigate the risk of adverse price movements.

Hedging in the Futures Markets Is Accomplished By