A rise in the market price of a security may be fully offset by a loss in the futures market.

Name: A rise in the market price of a security may be fully offset by a loss in the futures market.
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This can occur when an investor has hedged a position by taking an opposite position in the futures market. If the security's price rises, the gain in the security's value can be offset by a loss in the futures contract, assuming the hedge is perfectly executed.

A Rise in the Market Price of a Security May