Entity: FUTURES
Futures are financial contracts obligating the buyer to purchase an asset or the seller to sell an asset at a predetermined future date and price. They are agreements for the buying and selling of goods, in which the price is agreed before a particular date.
Futures
Etymology
The term 'futures' originates from the concept of agreements for the buying and selling of goods at a predetermined future date.
Definition
Futures are financial contracts obligating the buyer to purchase an asset or the seller to sell an asset at a predetermined future date and price. They are agreements for the buying and selling of goods, in which the price is agreed before a particular date.
Historical Context
Futures trading has a long history dating back to ancient civilizations where agreements for future delivery of goods were made. In modern times, futures contracts have become standardized and traded on various exchanges.
Cultural Significance
Futures play a crucial role in financial markets, allowing participants to hedge risk, speculate on price movements, and facilitate price discovery. They are integral to the functioning of commodity markets and financial instruments.
Related Concepts
- Forward Contracts
- Options
- Derivatives
See Also
Financial contracts obligating the buyer to purchase an asset or the seller to sell an asset at a predetermined future date and price.