Futures contract


A futures contract is an agreement between two parties.[1] The buyer pays the seller today for the promise of the commodity at a future date.[2] Futures contracts are traded in futures exchanges.[3] The commodities can be things such as livestock, agriculture produce, metals, energy, and financial products.[4] Trading futures can be profitable.[4] But it is also complex and very risky.[5] Instead of gaining a profit, an investor can lose the money invested.[4] They could be required to pay more than they invested.[5]

Examples


References


  1. "Definition of 'Futures Contract'" . The Economic Times. Bennett, Coleman & Co. Ltd. Retrieved December 9, 2016.
  2. "What is a 'Futures Contract'" . Investopedia. Retrieved December 9, 2016.
  3. "Futures Trading Basics" . TheOptionsGuide.com. Retrieved 26 June 2015.
  4. 4.0 4.1 4.2 "Futures Contract" . InvestingAnswers, Inc. Retrieved December 9, 2016.
  5. 5.0 5.1 "Futures Markets Basics" . U.S. Commodies Futures Trading Commission. Retrieved 26 June 2015.









Categories: Finance




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