Bond future - Financial definition
Financial acronyms
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Concise definition of the term bond future
A bond future is a contract in which the buyer agrees to purchase pre-specified bonds from the seller at a set price and within a certain time window.
Comprehensive definition of the term bond future
Bond futures are traded on regulated derivatives exchanges across the world and are often very liquid.
The underlying instrument of a bond future is generally a notional bond which does not exist. Each contract maturity therefore has a pool of deliverable securities from which the seller of the contract can chose the bond he wants to deliver.