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Investors who take short positions in futures contract agree to ___________ the asset , and those who take long positions agree to __________ the asset

Sagot :

Investors who take short positions in futures contract agree to pay any increase in the value of the asset , and those who take long positions agree to receive any decrease in the value of the asset.

Futures contract refers to those financial contracts which make it mandatory for the parties to transact an asset at an already decided future date and price

In case, you go for short selling a future contract, you are buying a contract to later sell it at a lower price, in future. One thing to note, that unlike stock, you do not need to borrow over here.

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