FUTURES CONTRACT
\fjˈuːt͡ʃəz kˈɒntɹakt], \fjˈuːtʃəz kˈɒntɹakt], \f_j_ˈuː_tʃ_ə_z k_ˈɒ_n_t_ɹ_a_k_t]\
Definitions of FUTURES CONTRACT
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an agreement to buy or sell a specific amount of a commodity or financial instrument at a particular price on a stipulated future date; the contract can be sold before the settlement date
By Princeton University
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an agreement to buy or sell a specific amount of a commodity or financial instrument at a particular price on a stipulated future date; the contract can be sold before the settlement date
By DataStellar Co., Ltd
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Agreement to buy or sell a commodity, financial instrument, or security, on a stated future date, at a specified price; made binding when conducted on-the-fly, on-the-trading-floor. Standardized agreements for quantity, quality, delivery location, and delivery time for each item. Typically no actual delivery occurs as counter-contracts settle, or trade out the agreements. Mitigates the risk of wild price fluctuations as a hedge. A futures contract is an obligation requiring completion of the transaction. Contrast to an option. An option is a purchased right to buy or sell an item. An option lapses if not exercised.
By Henry Campbell Black
