In July this year, you entered an opening position of 45 short futures contracts on gold. Which of the following is FALSE :

Question

In July this year, you entered an opening position of 45 short futures contracts on gold. Which of the following is  FALSE :

Answer

Because you entered an opening position of 45 short futures contracts on gold. In December, you can exit your position by selling 45 short futures contracts on gold.

Answer

As your opening futures position was short, you close it out by entering a long position in the same futures contract.

Answer

In December, you close your position by entering 45 long futures contracts on gold.

Answer

Even though a futures contract is a legal obligation, you can still close your position prior to contract expiry.

Crowdly

In July this year, you entered an opening position of 45 short futures contracts...

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