Series 3: 1.3.4.4.4. Contract Termination

Taken from our Series 3

1.3.4.4.4. Contract Termination

Most futures contracts do not end in the delivery of the product. More than 99% are terminated by making an offsetting order, known more simply as an offset. If a purchaser has placed an opening order for 10 contracts of No. 2 Hard Red Winter wheat for delivery in September 2016, he will place an offsetting order on the same exchange to sell 10 contracts of Hard Red Winter wheat for delivery in th

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