How Does a Futures Contract Differ from a Stock Purchase? ⎊ Path

How Does a Futures Contract Differ from a Stock Purchase?

A futures contract is an obligation to buy or sell an asset at a future date, involving leverage and daily settlement (marking to market), and it is a derivative. A stock purchase is the outright ownership of a share of a company, with no expiration or daily margin calls, and it is an equity asset.

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