Futures
Financial contracts obligating the buyer to purchase or the seller to sell a specified asset at a predetermined future date and price.
Financial contracts obligating the buyer to purchase or the seller to sell a specified asset at a predetermined future date and price.
Introduction: Futures are standardized financial contracts traded on futures exchanges that obligate the buyer to purchase, and the seller to sell, a specific asset at a predetermined future date and price. These contracts cover a wide range of assets, including commodities, currencies, and financial instruments. Futures are used for hedging against price fluctuations, speculating on price movements, and facilitating price discovery. They are critical tools for investors, producers, and businesses to manage risk, secure prices for future transactions, and gain exposure to various assets without the need for immediate capital outlay.
Key Characteristics of Futures Contracts:
Strategies for Utilizing Futures: