When a commodity futures reaches its expiration,the seller usually:

Question

Quizplus · Accepted Answer

When a commodity futures contract reaches its expiration, the seller often takes an offsetting futures position, effectively closing out the original position. This allows them to settle the contract in cash rather than delivering the physical commodity. This is a common practice in futures trading, as it allows market participants to avoid the logistical challenges and costs associated with physical delivery.

When a Commodity Futures Reaches Its Expiration,the Seller Usually