4 weeks ago

Futures Trade

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In finance, a futures contract (sometimes called a futures) is a standardized legal contract to buy or sell something at a predetermined price for delivery at a specified time in the future, between parties not yet known to each other.

The asset transacted is usually a commodity or financial instrument. The predetermined price of the contract is known as the forward price.

The specified time in the future when delivery and payment occur is known as the delivery date. Because it derives its value from the value of the underlying asset, a futures contract is a derivative.


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