Questions tagged [futures contracts]

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CryptoTrader CryptoTrader Fri May 17 2024 | 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.

How do futures contracts pay out?

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