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How to read payoff diagrams for futures contracts

In this video, Dr Hong Bo explains how to read payoff diagrams for futures contracts.

We have already learnt that investors can use the futures market either to hedge or to speculate. But what does the payoff structure look like?

In this video, Dr Hong Bo explains how an investor’s position in the futures market – either buying or selling – affects the payoff, or profit and loss.

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Risk Management in the Global Economy

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