I have been trading for a long time in equities and options but I am new to the futures world, particularly treasury bond futures which is what I am interested in learning. I have some questions which I have not been able to answer on my own. 1. Why are the bid/ask spreads so high, and get higher the longer the date of delivery? 2. Are treasury futures always cash settled or otherwise? Do any actual treasury bonds change hands in treasury markets as a result of futures contracts? 3. To close out a treasury futures position, what happens exactly? What happens to the original contract price between buyer and seller as parties are interchanged? 4. What are all of the carrying costs? Is the accrued coupon of the underlying treasury bonds taken in to calculation at any time? What is the cost of financing the leverage on the position? Are there any other additional costs to the aforementioned other than broker commission? 5. Why is there a difference between initial margin and maintenance margin for futures contracts? 6. If normal contango operating futures markets converge in to the spot price from a premium position to spot price is this not a seller advantaged market place? 7. Is benchmark contract, 6%, $100,000 face value, applicable to all types of treasury futures? 8. How do I compare a treasury futures price with the actual spot price of that treasury future adjusted for the benchmark contract? 9. Because I have to deliver bonds from spot markets that are priced at a different par value than the benchmark contract does this mean I have to delivery odd and fractional lots of these securities? If anyone can help, I appreciate it.