Please help - university!

Discussion in 'Community Discussion' started by Jimmieboy, May 16, 2009.

  1. Jimmieboy macrumors 6502

    Jimmieboy

    Joined:
    Oct 30, 2005
    Location:
    Australia
    #1
    Hey everyone! Just hoping for some help! I have a univeristy assignment due on Tuesday and I'm struggling to understand the question which is:

    "If short selling of securities is banned in the spot market, how do you think it would impact the futures market for those securities?"

    Alright, so I understand that you can short sell a security and make a profit when the price of a security falls in value okay? What I don't understand is, what the corresponding futures market would be for a security. i.e. I could short sell BHP, but what would happen in the futures market with that security? Isn't short-selling using the futures market anyway?
     
  2. Jimmieboy thread starter macrumors 6502

    Jimmieboy

    Joined:
    Oct 30, 2005
    Location:
    Australia
  3. Jimmieboy thread starter macrumors 6502

    Jimmieboy

    Joined:
    Oct 30, 2005
    Location:
    Australia
  4. emt1 macrumors 65816

    Joined:
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