Naked: Difference between revisions
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A 'naked' position in a derivatives contract is one where the holder has no other related offsetting contract, asset or liability. | A 'naked' position in a derivatives contract is one where the holder has no other related offsetting contract, asset or liability. | ||
The only possible profit or gain is from a favourable outturn market price. | The only possible profit or gain is from a favourable outturn market price. | ||
Revision as of 21:58, 27 November 2016
A 'naked' position in a derivatives contract is one where the holder has no other related offsetting contract, asset or liability.
The only possible profit or gain is from a favourable outturn market price.
Naked positions are, by definition, speculative (rather than hedging).
