A long position in a futures contract can be canceled by selling a futures contract (i.e., a contract to make delivery).

Question

A long position in a futures contract can be canceled by selling a futures contract (i.e., a contract to make delivery).​

Quizplus · Accepted Answer

Selling a futures contract is equivalent to canceling a long position in a futures contract. When a futures contract is sold, the obligation to make delivery is transferred to the buyer of the futures contract, thereby canceling the long position held by the seller.

A Long Position in a Futures Contract Can Be Canceled