Enrico
Fri May 17 2024
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5 answers
836
What happens if you hold a futures contract until expiration?
Could you please explain what would transpire if an individual decides to retain a futures contract until its expiration date? I'm particularly interested in understanding the consequences of this decision from both a financial and a contractual perspective. Would it result in an automatic settlement of the contract, or would there be additional steps involved? Also, what kind of risks or potential benefits might one encounter in holding a futures contract until its expiry? It would be helpful if you could elaborate on the intricacies of this process and provide some insight into how it impacts the overall market dynamics. Thank you for your assistance in clarifying this matter.
SejongWisdomKeeperElite
Fri May 17 2024
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7 answers
1532
What happens if you hold a futures contract to expiration?
Could you please elaborate on what exactly happens when an individual holds a futures contract until it reaches its expiration date? I'm curious about the process and consequences involved. For instance, does the holder have to fulfill some obligation? Or does the contract automatically settle in some way? Additionally, are there any fees or penalties associated with holding a futures contract to expiration? I'm trying to understand the full implications of this decision, so any insights you could provide would be greatly appreciated.
