Investors who take short positions in futures contract agree to _ the asset , and those who take long positions agree to the asset

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04-08-2022
Social Studies

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Investors who take short positions in futures contract agree to _ the asset , and those who take long positions agree to the asset

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AnnuGidn AnnuGidn · Answer 1 · 2022-08-13T05:18:25-04:00

Investors who take short positions in futures contract agree to pay any increase in the value of the asset , and those who take long positions agree to receive any decrease in the value of the asset.

Futures contract refers to those financial contracts which make it mandatory for the parties to transact an asset at an already decided future date and price

In case, you go for short selling a future contract, you are buying a contract to later sell it at a lower price, in future. One thing to note, that unlike stock, you do not need to borrow over here.

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