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futures brokers

Investment brokers specializing in commodities futures, or derivative contracts to sell and buy assets at a future date for the current price, similarly to stock options. Unlike stocks, future trading requires the buyer to assume a long position and the seller to assume a short position immediately, as the seller does not sell the asset until the contract date. Futures brokers often work directly in the trading pit through hand signals and yells, and less through electronic systems.

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Futures Terms and Definitions

Category: Business

Total terms: 22

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