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Derivatives and Risk Management, 1st Edition
book

Derivatives and Risk Management, 1st Edition

by Sundaram Janakiramanan
May 2024
Intermediate to advanced content levelIntermediate to advanced
542 pages
27h 26m
English
Pearson India
Content preview from Derivatives and Risk Management, 1st Edition
Futures Contracts 85
5.4.8 Position Limits
e position limit refers to the maximum number of contracts that can be held by a trader in futures.
e purpose of position limits is to prevent speculators from exercising any inuence on the market or
to prevent any particular trader from cornering the market. For example, the position limit for a cashew
contract in the NCDEX is stated as:
“200,000 cartons for all contracts for members and 50,000 cartons for all contracts for clients. e
above limits will not apply to bona de hedgers. For bona de hedgers, the Exchange will, on a case-to-
case basis, decide the hedge limits. For near-month contracts ...
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Publisher Resources

ISBN: 9781299447547Publisher Website