Questions tagged [not selling]

CryptoLegend Thu Oct 24 2024 | 6 answers 1790

I'm wondering if I have to declare or report my cryptocurrency holdings to any authority, especially if I haven't sold or traded them.

Eleonora Fri Sep 06 2024 | 5 answers 1070

If you don't sell your futures contracts before the expiration date, a few things can happen. Firstly, you may be obligated to fulfill the terms of the contract, which could involve delivering the underlying asset, such as a commodity or security, to the buyer at the agreed-upon price. This can be a challenge, especially if you don't have access to the asset or if its market price has significantly changed since the contract was established. Secondly, if you're holding a losing position in your futures contract, not selling could result in significant financial losses. Futures trading is a Leveraged product, meaning that you only need to put down a fraction of the total value of the contract to open a position. However, your losses can still be significant if the market moves against you. Lastly, holding onto a futures contract that's approaching expiration can be risky because the market's liquidity may decrease as the expiration date nears. This can make it harder to sell your contract at a fair price and could lead to slippage, where your trade executes at a less favorable price than you intended. So, in summary, not selling your futures contracts before expiration can result in obligations to fulfill the contract, significant financial losses, and decreased liquidity in the market. It's important to carefully manage your risk and monitor your positions as the expiration date approaches.

Lorenzo Fri May 17 2024 | 7 answers 1630

I'm curious, what happens if you don't sell your futures contracts? Could you please elaborate on the potential outcomes? I've been hearing about the risks involved in futures trading, but I'm still trying to wrap my head around the specifics. Do you mind sharing some insights? For instance, what kind of financial losses could one face if they decide to hold on to their futures instead of selling them? Or are there any potential benefits that might outweigh the risks? I'm really interested in understanding this aspect of cryptocurrency and finance better.

WhisperInfinity Fri May 17 2024 | 6 answers 1162

I'm curious about futures contracts and what might happen if I decide not to sell them. Could you please explain? I've heard that futures contracts are agreements to buy or sell an asset at a specified price on a future date, but I'm not entirely sure what the consequences are if I don't fulfill my obligation. Would I face any penalties? Would the price of the asset affect my decision? Could you provide some scenarios to illustrate what might happen in different market conditions? It would be helpful to have a clearer understanding of the risks involved in holding futures contracts.

lucas_lewis_inventor Fri May 17 2024 | 7 answers 1340

I'm curious, what exactly happens if you decide not to sell your futures contract? I've been hearing a lot about the risks involved in futures trading, but I'm still a bit hazy on the consequences of holding onto a contract beyond its expiration date. Could you elaborate on the potential outcomes? I'm particularly interested in understanding the financial implications and how it might affect my portfolio. Is it possible to lose more than my initial investment? And what are the strategic considerations one should make when deciding whether to sell or hold a futures contract?