Saturday, November 19, 2011

What happens if I hold a crude oil futures contract past expiration?

Let's say I am trading crude oil futures, and I accidentally held a contract past expiration. What would happen? I can't actually take delivery of 1,000 barrels of oil!





Conversely, what would happen if I held a sort contract passed expiration? I don't have 1,000 barrels of oil to deliver!





Would these situation be settled in cash? What exactly would happen?





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If you were short you were settled in cash, if you were long you went past First Notice Day.





Get a new broker. They should have called you and alerted you to this problem BEFORE First Notice Day.

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