Daily Mark to Market and Expiry Settlement in Bitcoin Futures
Summary
The document clarifies the distinction between daily futures accounting and final settlement. Futures are settled at expiry, while their positions are marked to market each day. The daily mark to market changes the balance in the trader’s margin account, reflecting gains or losses as prices move.
The answer is concise and gives no exchange specific procedures, contract terms, or explanation of how margin calls are handled. Its core distinction is useful for understanding futures mechanics, but traders should consult the applicable contract rules for details such as settlement method and timing.
Key ideas
- Futures contracts reach final settlement at expiry.
- Daily marking to market transfers gains or losses into the margin account.
- The excerpt gives a general explanation without exchange specific contract details.
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Full text
# Are bitcoin futures daily settled at T+1 or is there another mechanism? # Are bitcoin futures daily settled at T+1 or is there another mechanism? As in the title, are bitcoin futures daily settled at T+1 or is there another mechanism? Both CBOE and CME ## Answer by Ezy (score 1) https://quant.stackexchange.com/a/43172 Futures settle at their expiry, not daily. Futures mark-to-market daily and their mtm impacts your margin account. Hope this helps.
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