Futures also have time-decay, right?

That's true for shorts however, in the case of longs the cost of carry reflects the interest rate paid for the margin on the account holding the futures.

More links in wiki...

http://en.wikipedia.org/wiki/Futures_contract#Pricing
http://en.wikipedia.org/wiki/Rational_pricing#Futures

 

Hm, good info, thanks.

So in short for the OP: yes, there is timedecay and it is unlike for options linear in fashion....

 

Theta ( time decay ) is never linear, therefore it is not time decay. Cost of carry can be linear.

 

OK, I stand corrected. So let's call it premium...

 

Convergence isn't the same as extrinsic decay. One is a cash outlay, the other is mtm.

 

Since when is decay prevented from being linear? If someone has tooth decay, should he be happy if told the rotting is linear, and therefore, cannot be decay?

 

yes, actual price may decrease but 1,502 vs. 1,495 example will still be $500 to daytrade hold at margin...that is the issue

 

so not time decay at ALL!!!..options are configured different than futures...your broker will ask for the same amount to hold on margin 1 contract whether it is dec 07 or dec 09...come on guys, back me up here!!!

 

I did.

 

Does anyone here know which broker has account for trading:
FX spot and Future in one account?

Please let me know the website.

Thanks ahead.