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Futures contract |
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Futures contractA legal agreement to make or take delivery of a specified instrument (for example, a commodity such as coffee or a financial instrument such as shares) at a fixed future date at a price determined at the time of dealing.Futures contractA legally binding agreement to buy or sell a commodity or financial instrument in a designated future month at a price agreed upon today by the buyer and seller. Futures contracts are standardized according to the quality, quantity, and delivery time and location for each commodity. A futures contract differs from an option because an option is the right to buy or sell, while a futures contract is the promise to actually make a transaction. A future is part of a class of securities called derivatives, so named because such securities derive their value from the worth of an underlying investment.Futures contract Similar MatchesContract noteContract noteA confirming note, containing details of a stock exchange deal, which is sent by a broker to a client. The contract note shows you:the date and time of dealthe title of the securitythe number bought/soldthe price paid/receivedthe total value of the dealthe stamp duty (if a purchase of shares)the amount of commission charged by the brokerTraditionally, contract notes are posted. Some online brokers email them. Cash settlement contractsCash settlement contractsFutures contracts such as stock index futures that settle for cash and do not involve delivery of the underlying. Guaranteed investment contract (GIC)Guaranteed investment contract (GIC)A pure investment product in which a life company agrees, for a single premium, to pay at a maturity date the principal amount of a predetermined annual crediting (interest) rate over the life of the investment. Open contractsOpen contractsContracts that have been bought or sold without completion of the transaction by subsequent sale or purchase, or by making or taking actual delivery of the financial instrument or physical commodity. Bullet contractBullet contractA guaranteed investment contract purchased with a single (one-shot) premium. Related: Window contract. Further Suggestionscontract monthContract Unilateral Contract Set of contracts perspective Guaranteed insurance contract Contraction Foreign currency futures contract contracting out Contractual lien Take or pay contract Bank Investment Contract (BIC) Contractual Claim Long term forward contracts Contracted out money purchase scheme Forward forward contract Installment Contract Options contract Commodity futures contract Periodic purchase deferred contract Contract Contract for deed Nexus (of contracts) Sales Contract Management contract Contract month |
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