Outright Futures Position

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Dictionary Says

Definition of 'Outright Futures Position'

A long or short trade on an underlying futures contract that has the potential for unlimited profit, but also carries the risk of unlimited losses. Outright futures are also called naked futures because they leave the investor highly exposed. To reduce risk, the investor may choose to purchase a protective, offsetting option or the underlying security itself.

Investopedia Says

Investopedia explains 'Outright Futures Position'

An example of a financial instrument an investor might choose, instead of an outright futures position, is a synthetic long put option. Investors might purchase this type of option when the price of a commodity is expected to drop and they want unlimited potential profit but limited risk. The synthetic will also have much lower up-front costs than an outright futures position. Another alternative to an outright futures position that can sometimes carry less risk is to take a spread position.
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'Outright Futures Position'

  • Get Into Low-Cost Futures Trading With Synthetics

    http://www.investopedia.com/articles/optioninvestor/08/synthetic-futures.asp
    ... While it may cost less to place the position, you are still exposed to the same
    unlimited loss that's typical of an outright futures position. ...

  • Synthetic Options Provide Real Advantages

    http://www.investopedia.com/articles/optioninvestor/08/synthetic-options.asp
    ... You can either purchase the futures position and put up $1,350 in margin, or buy
    a call for $3,000. While the outright futures contract requires less than the ...

  • Options Greeks: Position Greeks | Investopedia

    http://www.investopedia.com/university/option-greeks/greeks6.asp
    ... LetÂ’s begin with basic outright positions, which we ... 100 shares of the underlying
    or one futures contract ... signs, then we can calculate the position Delta easily ...

  • The Advantages Of SPAN Margin

    http://www.investopedia.com/articles/optioninvestor/02/091802.asp
    ... Buying options outright typically does not require any deposit ... the amount required
    to open a position, but that ... by all traders of options on futures, can help ...

  • Offset Risk With Options, Futures And Hedge Funds

    http://www.investopedia.com/articles/trading/09/offset-risk-options-futures-hedge-funds.asp
    ... Option Buying: Buying an option outright may not seem to be ... This method of using
    futures is a dynamic one ... have to maintain this market neutral position as time ...

  • CFA Level 1 Study Guide - Fixed Income Investments - Institutional ...

    http://www.investopedia.com/exam-guide/cfa-level-1/fixed-income-investments/institutional-investors-financing-purchases.asp
    ... Futures Account; 15.25 Closing and Terminating a Futures Position; 15.26 Other
    Types of Derivatives; 15.27 European vs. American Options ...

  • Trading The QQQQ With In-The-Money Put Spreads

    http://www.investopedia.com/articles/optioninvestor/05/TradingQQQQ.asp
    ... But moving from outright options buying and selling ... The position contains a significant
    statistical edge, as ... Nasdaq 100 Index, much like futures traders trade ...

  • Trading The QQQQ With In-The-Money Put Spreads

    http://www.investopedia.com/articles/optioninvestor/05/tradingqqqq.asp
    ... But moving from outright options buying and selling ... The position contains a significant
    statistical edge, as ... Nasdaq 100 Index, much like futures traders trade ...

  • Options Greeks: Introduction | Investopedia

    http://www.investopedia.com/university/option-greeks/
    ... When options are traded outright, or are combined, we can ... neutral outlook on a stock
    or futures market, the ... options will net out a positive position Vega (long ...

  • Option Spreads: Selling And Buying To Form A Spread | Investopedia

    http://www.investopedia.com/university/optionspreadstrategies/optionspreads1.asp
    ... in some cases (when trading futures options), multiple ... chosen and the resulting
    differential position Theta, Delta ... Remember that with an outright option you ...

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