What happens if you don't sell futures?

If you don't sell your futures contracts before the expiration date, a few things can happen. Firstly, you may be obligated to fulfill the terms of the contract, which could involve delivering the underlying asset, such as a commodity or security, to the buyer at the agreed-upon price. This can be a challenge, especially if you don't have access to the asset or if its market price has significantly changed since the contract was established. Secondly, if you're holding a losing position in your futures contract, not selling could result in significant financial losses. Futures trading is a Leveraged product, meaning that you only need to put down a fraction of the total value of the contract to open a position. However, your losses can still be significant if the market moves against you. Lastly, holding onto a futures contract that's approaching expiration can be risky because the market's liquidity may decrease as the expiration date nears. This can make it harder to sell your contract at a fair price and could lead to slippage, where your trade executes at a less favorable price than you intended. So, in summary, not selling your futures contracts before expiration can result in obligations to fulfill the contract, significant financial losses, and decreased liquidity in the market. It's important to carefully manage your risk and monitor your positions as the expiration date approaches.