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You are completely convinced that the price of gold is going to rise significantly over the next year and want to take as large a
You are completely convinced that the price of gold is going to rise significantly over the next year and want to take as large a position as you can in the market but have limited funds. How could you use the futures market to leverage your position? You should buy as many one-year gold futures contracts as you can afford, depending on the margin payment required. Since the margin payment is a fraction of the value of the O O You cannot use the futures market to leverage your position. If you think the price of gold is going to rise, your best bet is to buy gold now. contract, you will leverage your exposure to market movements. The value of the futures contracts will rise when the price of gold falls and vice versa. You should sell as many one-year gold futures as you can. You can leverage your exposure since you only have to maintain a small deposit for each buyer. The value of the futures contracts will rise in lockstep with the price of gold O You should buy as many one-year gold futures contracts as you can afford, depending on the margin payment required. Since the margin payment is a fraction of the value of the contract, you will leverage your exposure to market movements. The value of the futures contracts will rise in lockstep with the price of gold
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