Cancelling a futures position by making an equivalent but opposite transaction is best described as:
A) offsetting.
B) margin call.
C) marked to market.
D) daily resettlement.

Question

Quizplus · Accepted Answer

Offsetting a futures position involves entering into an equivalent but opposite transaction to the original position, effectively cancelling it out. This is a common method to close a position in futures contracts.

Cancelling a Futures Position by Making an Equivalent but Opposite