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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.
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