Home » Glossary Item » Futures Contract

Futures Contract

Posted by Svetlana Tokunova
Comments Off on Futures Contract

An agreement to purchase or sell a commodity for a delivery in the future:

(1) at a price that is determined at initiation of the contract;

(2)which obligates each party to the contract to fulfill the contract at the specified price;

(3) which is used to assume or shift price risk;

(4) which may be satisfied by delivery or offset.

« Back to Glossary Index
Make the first comment

The comments are closed.