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Saturday 21

December, 2024 1:39 PM


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Open position

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What does it mean?

The total number of futures contracts entered into a particular delivery month or futures market which have not been liquidated by an offsetting futures transaction or by actual physical delivery.

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TheBull says...

The vast majority of futures contracts do not result in the making or taking of delivery. Instead, open positions are exited by the buying or selling of futures positions in order to close (cover) the original position. For example, if you buy to enter a futures contract, an open position exists until that position is sold (closed). If you sell to enter a futures contract, an open position exists until that position is bought back (closed). You can exit a futures position at any time. You don't have to wait for expiry.

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