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futures contract
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standardized legal agreement to buy or sell something (usually a commodity or financial instrument) at a predetermined price (“forward price”) at a specified time (“delivery date”) in the future
A futures contract is a standardized legal agreement where two parties commit to buying or selling something—like oil, wheat, or a stock index—at a price set today for delivery at a specific future date. These contracts matter because they allow businesses and investors to lock in prices in advance, protecting themselves against unexpected price changes and helping them plan finances more predictably.
AI-generated from the Wikipedia summary — may contain errors.
Wikidata facts
- Subclass of
- security
Show 2 more facts
- described by source
- Encyclopædia Britannica 11th edition
- different from
- forward contract
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Encyclopedic overview
Instruments
Bond
Excerpted from Wikipedia’s “futures contract” article, available under the CC BY-SA 4.0 licence.