hi , it mentions that if we are due to sell an asset we can hedge this with entering a short futures position. then it says at the end that we close the position by emtering a long one. 1. is it possible to explain me the steps using some example including "actual" cfs? 2. why chose to close out the position ? thanks
Hi A good example of closing out a position is in chapter 2 page 6. A trader would close out a position when he or she no longer wants the exposure from that trade, but there would be many real world situations when a trader might decide that an exposure should be closed.
