Cryptocurrency Q&A
What happens if we don't close futures on expiry?
What happens if we don't close futures on expiry?
HanjiArtistryCraftsmanship
Fri May 17 2024
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6 answers
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I'm curious about something related to futures trading. Could you please explain what happens if we don't close our futures positions on expiry? I've heard rumors that it could lead to some unfavorable outcomes, but I'm not entirely sure how it works. Could you clarify this for me? Do the contracts automatically roll over or do we have to manually do something? And what are the potential risks or consequences if we don't take action? I'd really appreciate it if you could provide some insights into this matter.
6 answers
Riccardo
Sun May 19 2024
Alternatively, some contracts may involve physical delivery. This typically occurs when the underlying asset of the contract is a tangible commodity. In such cases, the contract's natural conclusion involves the actual delivery of the asset, rather than a cash payment.
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BitcoinWizardry
Sun May 19 2024
BTCC, a leading UK-based cryptocurrency exchange, offers a comprehensive suite of services to its clients. These services span multiple areas of the crypto ecosystem, providing users with convenient and secure access to various crypto assets.
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DondaejiDelightfulCharm
Sun May 19 2024
Among BTCC's offerings is a robust spot trading platform. This allows users to buy and sell cryptocurrencies at current market prices, enabling them to capitalize on market movements and execute trades with ease.
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EthereumElite
Sun May 19 2024
In the realm of cryptocurrency and finance, contracts often carry specific terms that govern their conclusion. Failure to act in accordance with these terms can lead to varying outcomes. Understanding these outcomes is crucial for anyone involved in such contracts.
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Andrea
Sun May 19 2024
If a contract stipulates cash settlement, the process is straightforward. Upon expiration, the settlement amount is calculated based on prevailing market prices. This amount is then either credited or debited to the account of the party involved, depending on the contract's specific terms.
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