How Does the Margin Requirement Change as a Contract Approaches Expiration? ⎊ Path

How Does the Margin Requirement Change as a Contract Approaches Expiration?

Margin requirements may increase as a contract approaches expiration, especially if the contract is physically settled. This is due to the increased risk of price volatility during the final settlement period and the risk associated with physical delivery logistics.

For cash-settled contracts, the change may be less pronounced.

Does a Delivery Default Affect the Non-Defaulting Counterparty?

How Does the Initial Margin Requirement Change as the Contract Approaches Expiration?

How Does the Basis Typically Behave as a Futures Contract Approaches Expiration?

Do Physically-Settled Futures Contracts Typically Trade at a Premium or Discount to Cash-Settled Ones?

How Does the BCBS Framework’s Treatment of Operational Risk for Crypto Compare to Its Treatment for Traditional Assets?

How Does Physical Settlement Influence the Convergence of Spot and Futures Prices at Expiration?

How Do Margin Requirements Change in Response to Heightened Regulatory Scrutiny?

What Mechanisms Do Clearing Houses Use to Prevent Delivery Default in Physical Settlement?

Glossar

Final Settlement Period

Finality ⎊ The Final Settlement Period, within cryptocurrency derivatives, options trading, and broader financial derivatives, represents the definitive timeframe concluding the lifecycle of a contract.