Futures contract - Financial definition
Financial acronyms
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Concise definition of the term futures contract
A financial contract where the buyer commits to purchasing - and the seller to selling - a certain quantity of an underlying asset at a predetermined future date and price. Futures contracts are standardized and generally traded on organized markets. At expiry, the contract can provide for either physical delivery of the underlying asset or cash settlement.
Comprehensive definition of the term futures contract
Futures contracts are a widely used means to hedge positions in the underlying asset, or in assets with similar characteristics,
againts market risks.