A contractual agreement, generally made on the trading floor of a futures exchange, to buy or sell a particular commodity or financial instrument at a pre-determined price in the future. Futures contracts detail the quality and quantity of the underlying asset; they are standardized to facilitate trading on a futures exchange.
 | | | Futures Contract | | A futures contract is a legal agreement, generally made on the trading floor of a futures exchange, to buy or sell a particular commodity or financial instrument at a predetermined price at a specified time in the future. Futures contracts are standardized to facilitate trading on a futures exchange and, depending on the underlying asset being traded, detail the quality and quantity of the commodity. | | | Breaking it Down: | | Some futures contracts may call for physical delivery of the asset, while others are settled in cash. The terms "futures contract" and "futures" refer to... Read More | | | Related to "Futures Contract" | | | | | | | Wide Basis | | A condition found in futures markets in which the spot price of underlying commodities is not close to the futures price of the same contract. Read More | | | | Current Delivery | | A type of futures contract that requires the delivery of the underlying commodity in the current or following month before other futures contracts of the same commodity with other delivery dates. Read More | | | | | Front Month | | Front month refers to the futures contract in each market with the shortest time to delivery. It is usually, but not always, the current month's contract. Read More | | | | Underlying Asset | | A term used in derivatives trading, such as with options. A derivative is a financial instrument whose price is based (derived) from a different asset. Read More | | | | | | | | | | Follow Us: |  |  | | | | | | |
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