Fat tail and Naked: Difference between pages
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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. | ||
The only possible profit or gain is from a favourable outturn market price. | |||
Naked positions are, by definition, speculative (rather than hedging). | |||
== See also == | == See also == | ||
* [[ | * [[Arbitrage]] | ||
* [[ | * [[Derivative]] | ||
* [[ | * [[Futures]] | ||
* [[ | * [[Hedging]] | ||
* [[ | * [[Option]] | ||
* [[ | * [[Outturn]] | ||
* [[ | * [[Speculation]] | ||
Revision as of 10:05, 7 October 2015
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).