Shorting futures contracts, brings with it an obligation to deliver in
the future. People who short futures contracts may not be selling something that they do not own yet.
They may be selling something that is not even planted yet. In fact a farmer may have to pre-sell his
crop to get the funds for seed. With futures there is no borrowing of any securities like with stocks.
The clearinghouse only as a good faith deposit, holds margin. Shorting futures contracts, brings with
it an obligation to deliver in the future.
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There is no interest or dividends to be paid. Shorting futures contracts, brings with it an obligation to deliver in the future. There is no deterioration of your capital because of time, as there may be with options. When there is no fluctuation in price it does not cost anything to maintain a short futures position. New contracts are only created out of open interest increasing transactions, involving a new seller and a new buyer. Shorting futures contracts, brings with it an obligation to deliver in the future.