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Futures have to be settled physically, if carried to expiration, as far as I know
by thefj 6y ago
Futures have to be settled physically, if carried to expiration, as far as I know
- seafoam 6y agoRetail brokers do not allow the position to be carried all the way to the first delivery date. For example : https://ibkr.info/node/992 https://ibkr.info/node/992
- kthejoker2 6y agoRight ... so if you can't undertake delivery, they sell it out on the spot market. If everyone in the market can't undertake delivery, the buyers on the other side who can will have their pick of orders, and prices will plummet. You'll be selling heaters in Hell.
- aww_dang 6y agohttps://www.moneymetals.com/news/2020/03/27/gold-traders-are-paid-not-to-redeem-comex-efps-001995 https://www.moneymetals.com/news/2020/03/27/gold-traders-are... There's a bit of controversy around this.