What happens if you hold a futures contract for Litecoin until it reaches its expiration date?

1 answers

• Masudrana MilonJan 30, 2024 · 2 years ago
  When you hold a futures contract for Litecoin until it reaches its expiration date, the outcome will depend on the terms of the contract. If it is a physically settled contract, you will receive the actual Litecoin at the agreed-upon price. This means that if the price of Litecoin has increased, you can sell it at a higher price and make a profit. Conversely, if the price has decreased, you may have to sell it at a lower price and incur a loss. If it is a cash-settled contract, the settlement is done in cash based on the difference between the contract price and the market price of Litecoin at expiration. This allows you to profit or lose money without actually owning the underlying asset.
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