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Which are the two positions I can take in a futures contract?
With a futures contract, you can either take a long position or a short position.
- Long position: You intend to buy the asset in future. This is done when traders expect that the underlying stock’s price will rise in the future.
- Short position: You intend to sell the asset in future. This is done when traders expect that the underlying stock’s price will fall in the future.
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