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A company sells the futures of price 91 and the deal involves 20 contracts(of 500k each). How much money will they receive for selling? Does the company sell without receiving any payments and then when the company buy it before the loan starts, both parties decide how much to pay based on gain or loss?
Futures deals are settled at the end of the deal – depending on whether you are borrowing or depositing, you either buy futures and sell them later, or sell futures and buy them later.
It is at the end of the deal that you receive any profit or pay in any loss.All of this is explained in full with examples in the free lectures, and I cannot type out all my lectures here 🙂
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