what happens if a futures contract is held until it expires 
unless the contract position is closed out prior to its expiration the short is obligated to make delivery to the long who is obligated to take it depending on the contract the values exchanged can be settled in cash most often the trader will simply pay or receive a cash settlement depending on whether the underlying asset increased or decreased during the investment holding period in some cases however futures contracts will require physical delivery in this scenario the investor holding the contract upon expiration would be responsible for storing the goods and would need to cover costs for material handling physical storage and insurance who uses futures contracts speculators can use futures contracts to bet on the future price of some asset or security hedgers use futures to lock in a price today to reduce market uncertainty between now and the time that good is to be delivered or received arbitrageurs trade futures contracts in or across related markets taking advantage of theoretical mispricings that may exist temporarily 