Definition of futures contract in English English dictionary
a standardized contract, traded on a futures exchange, to buy or sell a standardized quantity of a specified commodity (or financial instrument) of standardized quality at a certain date in the future, at a price (the futures price)
Contract between two parties, one of which undertakes to buy, the other to sell a specified quantity of a standardised underlying instrument, or to carry out an equivalent cash settlement, at a precisely-specified future date (expiry date) and at a price defined precisely at the moment the contract is entered into
an agreement to buy or sell a specific amount of a commodity or financial instrument at a particular price on a stipulated future date; the contract can be sold before the settlement date
A legally binding agreement, made on the trading floor of a futures exchange, to buy or sell a commodity or financial instrument sometime in the future Futures contracts are standardized according to the quality, quantity, and delivery time and location for each commodity The only variable is price, which is discovered on an exchange trading floor
A term used to designate any or all contracts covering the sale of commodities (including financial instruments and cash representing indexes) for future delivery made on an exchange and subject to its rules
A legally binding agreement to buy or sell a commodity or financial instrument at a later date Futures contracts are standardized according to the quality, quantity, and delivery time and location for each commodity
A contract that commits the holder to the purchase or sale of an asset at an agreed price at a particular date in the future A person has a long position if she agrees to purchase the asset in the future, and a short position if she agrees to sell the asset in the future A futures contract differs from a forward contract in that the former is more standardised, traded through an exchange, and has maintenance margin plus mark-to-market requirements
A contract traded on a futures exchange which requires the delivery of a specified quality and quantity of a commodity, currency or financial instrument in a specified future month, if not liquidated before the contract matures
A contract that has uniform terms concerning price, quantity, and expiration and that obligates the seller to pay the value of the contract to the buyer at a prespecified date
An exchange-traded contract generally calling for delivery of a specified amount of a particular grade of commodity or financial instrument at a fixed date in the future Contracts are highly standardized, and traders need only agree on the price and number of contracts traded
An agreement to purchase or sell a commodity for delivery in the future: (1) at a price that is determined at initiation of the contract; (2) which obligates each party to the contract to fulfill the contract at the specified price; (3) which is used to assume or shift price risk; and (4) which may be satisfied by delivery or offset
An agreement between two people, one who sells and agrees to deliver, and one who buys and agrees to receive, a certain kind, quality and quantity of products to be delivered during a specified delivery month at a specified price Contracts are traded in organized markets called commodity futures exchanges Futures contracts are used primarily to transfer financial risk from those seeking to reduce the risk of price change to those seeking to profit from the risk Little grain is delivered as a result of futures market transactions; however, the pricing trends established through the open trading of futures contracts are directly reflected in world prices
A standardized, exchange-traded contract to make or take delivery of a particular type and grade of commodity at an agreed upon place and point in the future Futures contracts are transferable between parties
Agreement to buy or sell a set number of shares of a specific stock in a designated future month at a price agreed upon by the buyer and seller The contracts themselves are often traded on the futures market A futures contract differs from an option because an option is the right to buy or sell, whereas 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
A standardised and securitised derivative investment, involving the delivery of a commodity at an agreed price at a future date Futures contracts are used for speculation, hedging, and arbitrage purposes
A legally binding agreement made on the trading floor of a futures exchange to buy or sell a commodity or financial instrument sometime in the future Futures are standardized according to the quality, quantity, and delivery time and location for each commodity The only variable is price, which is discovered on an exchange floor Thus, in a currency futures contract, the underlying asset is a foreign currency
An agreement (obligation) to buy or sell a given quantity of a particular asset, at a specified future date, at a pre-agreed price Futures contracts have standard delivery dates, trading units, terms and conditions
Agreement to buy or sell a set number of shares of a specific stock in a designated future month at a price agreed upon today by the buyer and seller The contracts themselves are often traded on the futures market 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
The text book definition of a futures contract is a standardized contract between two parties that a) commits one to sell and the other to buy a stipulated quantity and grade of a commodity, currency, security, index or other specified item at a set price on or before a given date in the future; b) requires the daily settlement of all gains and losses as long as the contract remains open; c) for contracts remaining open until trading terminates, provides either for delivery or final cash payment (cash settlement) In laymen’s terms, if you are a speculator who has taken a position in the futures market, you have entered into a legal, binding agreement which will expose you and make you financially responsible for the consequences of price fluctuations of the futures contract
This is an agreement that allows an investor to buy or sell a commodity, like gold or wheat, or a financial instrument, like a currency, at some time in future 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
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 standardised 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
Contracts that obligate the seller to deliver and the buyer to purchase a commodity at a fixed price at a specified date; often no gas is exchanged and the contracts are used as a price hedging mechanism
A standardized agreement calling for deferred delivery of a commodity, or its equivalent, entered through organized futures exchanges Most agricultural futures contracts call for physical delivery, but feeder cattle futures contracts call for cash settlement at contract maturity In fact, contracts are usually liquidated before delivery Traders are classified as hedgers or speculators The FAIR Act of 1996 requires USDA to conduct research through pilot programs to determine if futures and options contracts can provide producers with reasonable protection from the financial risks of fluctuations in price, yield, and income inherent in the production and marketing of agricultural commodities