Questions tagged [futures contract]

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lucas_lewis_inventor lucas_lewis_inventor Fri May 17 2024 | 7 answers 1340

What happens if you don't sell futures contract?

I'm curious, what exactly happens if you decide not to sell your futures contract? I've been hearing a lot about the risks involved in futures trading, but I'm still a bit hazy on the consequences of holding onto a contract beyond its expiration date. Could you elaborate on the potential outcomes? I'm particularly interested in understanding the financial implications and how it might affect my portfolio. Is it possible to lose more than my initial investment? And what are the strategic considerations one should make when deciding whether to sell or hold a futures contract?

What happens if you don't sell futures contract?

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