Gains and Losses
Gains and losses on
futures contracts are calculated daily and paid, or withdrawn, daily. If you were a speculator who had a $1000 gain from price changes in the
Markets on a particular a day, that money would be deposited into your account on the same day. Now if you had a $1000 loss from price changes on a particular a day, that
money would be withdrawn from your account on the same day too. If the funds aren't available, you will be called on immediately to deposit them into your account. This process is an important aspect of futures trading and is called "daily cash settlement."
