Scalpers are typically characterized by holding overnight positions profit from

Question

Scalpers are typically characterized by holding overnight positions profit from one or two 'ticks' profit from price movement due to major announcements a and b a and c The difference between a futures and a forward contracts is (are) futures are traded on an organized exchange, while forwards are not. Futures contracts are standardized while forwards are tailor-made to the cust specifications. Futures contracts are guaranteed by a central clearing-house, while forwards Futures contracts are more effective in hedging than forward contracts. All of the above. a and b. a, b, and c. A trader can close out a long futures position by using a sell order to sell his holding. making an off-setting trade. using either one of the above two methods.

Explanation / Answer

ans 8: ans in (B) Profits from one or two ticks, Scalpers are basically those people who deals in numerous contracts in a day and makes little profits on each contracts also holds contracts for shorter period, do not go for overnight holding, they make the profit on little changes but they deal in volume hence they make big profits at the end of the day.

Ans 9: Ans is (G) a, b and c, forward contracts are more effective in hedging while future contracts are more effective in speculating. Hence answer is G

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