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What if future contract expired?

Updated: 8/18/2019
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Wiki User

12y ago

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Futures contracts expire all the time. When they do, someone will show up at your doorstep with nine truckloads of wheat and expect you to have money to pay for it.

This is why I keep telling people "don't buy a futures contract if you don't use the underlying." If you are a speculator and you bought wheat futures at $6, and wheat dropped to $5, you are going to lose $5000 because I can almost guarantee you don't have any way to handle 5000 bushels of wheat.

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12y ago
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