Futures

CFA Level III Derivatives
#1

Company buys futures contract (for simplicity let’s say 1) at $100,000. The other side of the futures contract sold it at the same price. The price of the contract goes up to $110,000 within a couple of days, then the short side (futures seller) deposits the difference into its futures account to mark-to-market. This means the seller has already deposited around $10,000 in total. I am interested does the long side (buyer of futures) receive daily increases in futures value in the form of cash, or this amount will be received if the position is closed?

Also, correct me if I am wrong somewhere.

#2

Futures have daily adjustments, forwards settle just at maturity

#3

So if the long side’s value is +$10,000, does it receive profit of each day in the form of cash into its bank account?

#4

Correct!