What is the risk associated with holding a futures position overnight? Option: Operational risk, Market impact risk, Overnight risk, Liquidity risk

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What is the risk associated with holding a futures position overnight?

Operational risk

Market impact risk

Overnight risk

Liquidity risk

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Which trading style is generally considered to have a higher risk due to overnight holding risk?

Swing Trading

Day Trading

Risk depends solely on the trader's strategy

Both carry equal risk

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What is one of the main risks associated with forwards contracts mentioned in the text?

Liquidity Risk

Interest Rate Risk

Inflation Risk

Market Volatility Risk

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What is a key advantage of shorting in the futures market compared to the spot market?

Greater liquidity and trading volume

Reduced risk of short delivery penalties

The ability to hold short positions overnight

Lower margin requirements for short positions

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What is a significant risk associated with intraday trading?

"Lack of liquidity"

"Dependence on long-term market trends"

"Limited profit potential"

"Market volatility leading to unexpected losses"

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What key risks associated with forward contracts do futures contracts aim to mitigate?

Liquidity risk, Default risk, Regulatory risk, Rigidity of the structure

Market risk, Credit risk, Operational risk, Legal risk

Technological risk, Environmental risk, Social risk, Governance risk

Inflation risk, Interest rate risk, Currency risk, Political risk