What is closing out of a position in the futures markets


Problem 1: What is the "closing out" of a position in the futures markets?

Problem 2: Why is closing out of a contracts permitted in the futures markets?

Problem 3: Why is unilateral transfer or sale of the contract typically not allowed in forward markets?

Please incorporate two high quality references and discuss answers in detail.

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Finance Basics: What is closing out of a position in the futures markets
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