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How Do Traders Establish a 'Long' or 'Short' Futures Position

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Essay

How do traders establish a 'long' or 'short' futures position? Explain how these positions can be subsequently 'closed-out'.


Definitions:

Rorschach Inkblot Test

A projective psychological test consisting of 10 inkblots printed on cards (created by Hermann Rorschach) used to analyze a person's personality characteristics and emotional functioning.

Dream Analysis

A therapeutic technique in psychology aimed at exploring the hidden meaning and symbols within dreams to uncover underlying thoughts and feelings.

Free Associations

Encouragement for a person to express a stream of consciousness to unearth subconscious thoughts and feelings.

Principle of Equivalence

In physics, specifically in general relativity, it is the principle stating that gravitational and inertial forces are of a similar nature and often indistinguishable.

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