One alternative in liquidating a futures contract position is to wait until the ________. At that time the party ________ a futures contract accepts delivery of the underlying; the party that ________ a futures contract liquidates the position by delivering the underlying at the agreed-upon price.

Question

Quizplus · Accepted Answer

In futures trading, the settlement date is the specified time at which the party who has purchased a futures contract accepts delivery of the underlying asset, while the party that has sold the futures contract fulfills their obligation by delivering the underlying asset at the agreed-upon price.

One Alternative in Liquidating a Futures Contract Position Is to Wait