| Cylinder |
A term used to describe a transaction, involving two derivatives, where there is no initial cost bourne by the investor when entering into the position.
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For example, an investor can sell a derivative and use its proceeds to purchase another security. A cylinder is different from a positive carry trade since it does not necessarily imply offsetting positions.
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Futures Fundamentals - For those who are new to futures but want a solid understanding of them, this tutorial explains what futures contracts are, how they work, why investors use them, and much more. |
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Related Terms
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