A Trader Closes Out a Long Futures Position by Buying

question 77

True/False

A trader closes out a long futures position by buying offsetting contracts.

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Definitions:

Negative Feedback

A response mechanism where the output of a system is used to adjust or control its further actions, typically to reduce differences from a desired state.

Feedback

The information given to individuals regarding their performance or behavior, intended to guide future improvements.

System Purpose

The intended goal or function that a system is designed to achieve within a specific context.

Unfreezing Stage

The initial phase in the change process where individuals or organizations become aware of the need for change, preparing them to move from their current way of doing things.