One day, investor A takes a long position in 10 contracts of a certain futures, and...

One day, investor A takes a long position in 10 contracts of a certain futures, and investor B takes a short position in 10 contracts of the same futures. If this is the only transaction for the futures on the day, the trading volume for the futures is 20.

Group of answer choices

True/ False

Solutions

Expert Solution

True :

Reason : Volume of trade, also known as trading volume, refers to the quantity of shares or contracts that belong to a given security traded on a daily basis. In other words, trading volume provides a measure of the number of shares that are transacted between a given time period.

Here 2 contracts are executed on the same security 10+ 10

Hence trading volume is 20.

Answer is True.

jeff jeffy answered 1 year ago

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