Futures are contracts that give buyers the obligation to buy an asset or commodity, and the seller the obligation to sell that asset or commodity, at an agreed upon price at a future point in time. Because this agreement is binding and not simply an option to buy or sell the underlying asset, futures are justly called futures contracts. Futures contracts are traded on a broad variety of underlying assets, including commodities such as grain, gold, silver, electricity production, crude oil, beef, pork, orange juice, sugar, natural gas and more. Additionally, futures contracts are also based on underlying securities, such as forex currencies, interest rates, bonds and equities.
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