Cryptocurrency Q&A
What happens if we don't sell futures on expiry?
What happens if we don't sell futures on expiry?
CryptoPioneer
Sat May 18 2024
|
6 answers
1574
I'm just a bit confused about futures trading. Could you explain what happens if we don't sell our futures contracts when they expire? I've heard some rumors that it could lead to some sort of financial penalty or obligation, but I'm not quite sure how it all works. Could you clarify this for me? I'm particularly interested in understanding the consequences of not selling on expiry, as well as any potential strategies or best practices for managing futures contracts effectively. Your expertise in this area would be greatly appreciated.
6 answers
GeishaCharming
Sun May 19 2024
However, there is a difference between futures contracts and options contracts in this regard. Options contracts give the holder the right, but not the obligation, to buy or sell an asset.
Was this helpful?
375
42
Eleonora
Sun May 19 2024
Therefore, with options contracts, there is no penalty for not settling before the expiration date. Investors can choose to let the contract expire without any obligation to act.
Was this helpful?
328
64
InfinityVoyager
Sun May 19 2024
Futures contracts are financial agreements that oblige parties to buy or sell an asset at a specified price on a future date. A crucial aspect of these contracts is the settlement process.
Was this helpful?
299
89
henry_miller_astronomer
Sun May 19 2024
Settlement refers to the fulfillment of the contract terms, either through delivery of the asset or payment of the difference between the contract price and the market price.
Was this helpful?
120
73
Alessandro
Sun May 19 2024
BTCC, a leading UK-based cryptocurrency exchange, offers a comprehensive range of services in the crypto space. Among these are spot trading, futures contracts, and secure wallet solutions.
Was this helpful?
225
90
Load 5 more related questions
