Futures Contract
Definition
Futures contracts are standardized financial contracts that promise to buy or sell an asset at a specific date and price in the future.
Futures contracts are financial contracts that promise to buy or sell a certain asset on a predetermined date and price. These contracts are usually standardized on an exchange and have a predetermined maturity. Futures contracts offer parties the opportunity to hedge against price fluctuations or speculate on a specific asset over a specific period. For example, if a farmer wants to sell his grain crops at a fixed price at a future date, he can purchase a futures contract and be protected against price fluctuations. Such contracts can be found in a variety of asset classes such as commodities, stocks, foreign currencies and interest rates.
This entry is part of the JrKripto crypto glossary. We explain key terms and concepts to help investors and traders understand the cryptocurrency market. Clear definitions support better decision-making and risk management.
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The JrKripto crypto glossary explains important terms and concepts so investors can understand the market better. Clear definitions support decision-making and risk management. Each entry has a short definition and, where useful, an extended explanation for quick reference or deeper reading.
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