Futures Contract

Knowledge Center

   

Description of Futures Contract. Explanation.

Contents

  1. Summary
  2. Forum
  3. Best Practices
  4. Expert Tips
  5. Resources
  6. Print
 

Definition Futures Contract. Description.


A Futures Contract is a standardized legally binding agreement, traded on a futures exchange, which requires the delivery of a commodity, currency, or financial instrument at a specified date in the future, at a set price specified on the last trading date. Futures contracts are standardized according to the quality, quantity and delivery time and location for each commodity. The only variable is price.


A futures contract gives the holder the right and the obligation to buy or sell. Contrast this with an options contract, which gives the buyer the right, but not the obligation, and the writer (seller) the obligation, but not the right. In other words, an option buyer can choose not to exercise when it would be uneconomical for him. The holder of a futures contract and the writer of an option, do not have a choice. To exit the commitment, the holder of a futures position has to sell his long position or buy back his short position, effectively closing the position.


Futures Contracts Forum
  Quotes on Futures. Quotations
Hi, do you know of a remarkable, humorous quote by a famous person or a proverb related to futures contracts?
Please enter a reaction to share it for other people to enjoy! Please use this template:
Author Name Year of Birth - Year of Death, sh...
     
 

Futures Contracts Special Interest Group


Special Interest Group

 

Best Practices - Futures Contracts Premium

Expert Tips - Futures Contracts Premium

Resources - Futures Contracts Premium

Introduction and Summary of Futures and Stop Loss Contracts

A derivative is a financial contract which derives its value from the performance of another entity such as an asset, index, or interest rate, called ...
Usage (application): Initial understanding of Futures and Stop Loss Contracts
 
 

News

Futures Contracts
     
 

Videos

Futures Contracts
     
 

Presentations

Futures Contracts
     
 

More

Futures Contracts
     

Compare with: American-Style Option  |  European-Style Option  |  Call Option  |  Put Option  |  Asian Option  |  Hedge

Special Interest Group Leader

You here


 

Return to Management Hub: Finance & Investing


More on Management  |  Return to Management Dictionary  | 

 

This ends our Futures Contract summary and forum.

About 12manage | Advertising | Link to us | Privacy | Terms of Service
Copyright 2016 12manage - The Executive Fast Track. V14.1 - Last updated: 10-12-2016. All names tm by their owners.