Hello, I am referring to the Risk Management reading about using futures to create cash out of Equity. To do so, one must short future contracts. My question is: Do you actually get cash when you short futures or you are just replicating a cash position by being totally hedged towards market risk? Thank you
you construct a synthetic position in cash,you don’t get cash
The cash is a synthetic position. i.e. - you don’t actually get it.
Edit - lyk beat me to it.
OK thanks to both of you guys 
Well…yes you’re right but technically you could takeout a collateralized loan against that futures hedge to get your cash.
OK thanks for that! Very interesting!