Futures Marketing Section II Mechanics of Futures Trading. Price Discovery. Buyers and sellers interacting with information to arrive at a price through negotiation. Futures Market Price. A source of what buyers and sellers think a commodities worth, at some point in the future, today. .
Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.
A B C D E
Long ------------- Buy
1 long + 1 short =
1 open contract
A sells to B
A- Short B- Long
C sells to B
A- Short B-Long 2 contracts C- Short
Open Interest = 2 Volume = 4
They take opposite sides of transaction