Chapter 01 · Section 1.1

Cash Flow - Futures

                   Forwards             Futures

Contract Terms     variable             standard
Delivery           expected             only 2-5%
Trading            via phone            centralised
Margins            negotiated           uniform
Credit Risk        taken by             clearing
                   counterparty         house
Liquidity          lesser               greater
Cash Flow          on delivery          .......

Now, in futures trading profits are received or losses are paid:

a) in the delivery month.
• b) on daily settlement.
  Yes. The customer's margin account is debited or credited daily based on each day's settlement price. Continue

(Click here for help)