Future price: quite confusing

I am reading the curriculum and now quite confused with the terminology “future price”. As future is a standardized version of forward, future price is fixed at initiation. But also in the book, they say future price changes and the daily settlement will reflect the gain/loss from these changes to our margin account, ultimately the future price will converge to the spot price S(T).

So, could I understand as follows:

  • The future price of the future we bought is fixed, and it is different with:
  • The future price which the book says that it changes daily. And, it actually is the initiated price of similar futures (having same expiration date with the future we bought) created and traded each day after the date we bought our future.

It’s not the future price that changes; it’s the value of your futures contract that changes.

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I know, i know that forward and future value change, not the future price. But the curriculum says that: “It also ensures an important principle that you will use later: The futures price converges to the spot price at expiration”. It makes me confused and that’s why I think the “future price” they mention there actually is the future price of other futures which have same expiry date as the future we bought but are initiated after the date we bought.

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Thank you Pyng (I am not sure Mr or Ms :grinning:) and Mr.S2000magician, I read the post Pying pointed out, a bit long but very worthy. However, I still wish the curriculum explained more clearly the convergence, the way it is written seems to make not only me but others confused.

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@S2000magician’s explanations are always solid gold. We are grateful to have him here. :kissing_heart: