Futures contract


 

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Futures contract

A 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 contract

A 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 Matches

Contract for deed

Contract for deed

A contract in which the seller agrees to defer all or part of the purchase price for a specified period of time.


Underlying futures contract

Underlying futures contract

A futures contract that supports an option on that future, which is executed if the option is exercised .


Cost plus contract

Cost plus contract

A contract in which the selling price is based on the total cost of production plus a fixed percentage or fixed amount.


Economic contraction

Economic contraction

The downward phase of the business cycle, in which GDP is falling and unemployment is rising over time.


Nexus (of contracts)

Nexus (of contracts)

A set or collection of something.


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