Futures Contract
Definition
An agreement to purchase or sell a commodity for delivery in the future: (1) at a price that is determined at initiation of the contract; (2) that obligates each party to the contract to fulfill the contract at the specified price; (3) that is used to assume or shift price risk; and (4) that may be satisfied by delivery or offset.
Related Terms Other terms related to 'Futures Contract' starting with the letter 'F' Fibonacci Numbers, Fictitious Trading, Front Month, Forex, Feed Ratio
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