Terms in futures

musicjunkie

Well-Known Member
#2
I will try to answer the questions but please do some research of your owni hope you know the basics of futures....
for every contract there is a buyer and a seller so you will always have equal number of buyers and sellers. open interest is the total numbers of contract present in the market.

Discount is when the futures contact is trading at DISCOUNT form the underlying asset.when long positions close their positions and Shorters buy back their positions then that is called unwindinging of contracts and that is when open interests "sheds"
sorry if the above is confusing i am in a hurry

--MJ
 

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