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A futures contract trades at many different prices over its lifetime. Each of those prices corresponds to a different "agreement" to buy and sell the underlying. Futures trading requires margin funds (collateral) from both parties to back up the "agreement". Futures are marked to market: If the market moves against your position, you have to put up more ...


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I no longer know much about futures but open interest is the same in both the futures and options markets. Open interest represents the number of contracts that exist on any given day. There are 4 scenarios: (1) BTO and STO = Both parties are initiating a new position (one new buyer and one new seller) so open interest increases by one contract (2) ...


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