Chiara
Fri May 17 2024
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6 answers
1421
What are the disadvantages of futures contracts?
Could you elaborate on the potential drawbacks of futures contracts? I'm particularly interested in understanding the risks involved for investors, as well as any challenges that might arise in terms of liquidity or market volatility. Additionally, I'm wondering if there are any specific regulations or compliance issues that one should be aware of when dealing with futures contracts. It would be great if you could provide some real-world examples or case studies to illustrate these disadvantages. Thank you for your insights.
CryptoTrader
Fri May 17 2024
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6 answers
1260
How do futures contracts pay out?
Could you please elaborate on how futures contracts pay out? I'm particularly interested in understanding the mechanics behind the settlement process. When a futures contract reaches its expiration date, how does the payout occur? Is it based on the difference between the contract price and the market price at that time? Or is there another method involved? Additionally, are there any fees or charges associated with the payout process? I'm eager to gain a deeper understanding of this aspect of futures trading. Thank you for your assistance.
