Futures
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A term used to designate all contracts covering the purchase and sale of financial instruments or physical commodities for future delivery on a commodity futures exchange. | ||
Additional Comments:
Futures Contract: An obligation to exchange a good or an instrument at a set price on a future date. The primary difference between a futures contract and a forward is that futures are typically traded over an exchange (exchange-traded contracts or ETCs), versus forwards, which are considered over-the-counter (OTC) contracts.
An OTC contract is any contract not traded on an exchange. |
Related Terms: | ||
Futures Contracts Agreement to buy or sell an underlying security at a predetermined date at an agreed price. ... Derivatives Derivatives are financial instruments whose value is based on the market value of an underlying asset ... Contract A unit of trading for a financial or commodity future; the actual bilateral agreement between the ... |
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