You currently have a long position in the 3-month futures market. Which one of the following would be a reverse trade to this position?
A)short spot
B)long spot
C)short 3-month futures
D)long 3-month futures
E)short 6-month futures

Question

Quizplus · Accepted Answer

A reverse trade to a long position in the 3-month futures market would be to short 3-month futures. This offsets the previous long position in the same contract. Shorting the spot market or going long in spot or 6-month futures would not necessarily reverse the position in the 3-month futures market.

You Currently Have a Long Position in the 3-Month Futures