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Which of the following helps you limit your losses in future contracts?

a) Daily cash settlements b) Price limits c) both A and B d) None of the above. You can't limit your losses in futures contracts

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Question added by Divyesh Patel , Assistant Professional Officer- Treasury , City Of Cape Town
Date Posted: 2014/05/21
SHAIKH MOHAMMED BASHEER AHMED SHAIKH
by SHAIKH MOHAMMED BASHEER AHMED SHAIKH , Account Manager , Tarik Al Zahid Holding Company

I beleive option B is the correct answer, since the contracts in the futures market are a result of competitive price discovery. Prices are quoted as they would be in the cash market: in dollars and cents or per unit (gold ounces, bushels, barrels, index points, percentages and so on).

georgei assi
by georgei assi , مدير حسابات , المجموعة السورية

Daily cash reconciliations and price limits both help to reduce losses in the futures correct answer C

Divyesh Patel
by Divyesh Patel , Assistant Professional Officer- Treasury , City Of Cape Town

c) both A and B

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