- Futures Contract
- Formal understanding to purchase or sell a predetermined quantity of specific stock at a given future date. The price at which the trade will take place is also determined in advance by seller and buyer. Such contracts can be bought or sold in futures markets. This contract is different from options because the latter gives the holder a right to purchase or sell. A futures contract is a derivative instrument and constitutes a promise to fulfill the terms of the contract.
Futures Contract
Filed Under: f by
