Futures 101 – What is a Futures Contract?
@TigerTalks：
What is a Futures Contract?Forward and futures contracts are financial instruments that allow market participants to offset or assume the risk of a price change of an asset over time. A futures contract is distinct from a forward contract in two important ways: first, a futures contract is a legally binding agreement to buy or sell a standardized asset on a specific date or during a specific month. Second, this transaction is facilitated through a futures exchange. The fact that futures contracts are standardized and exchange-traded makes these instruments indispensable to commodity producers, consumers, traders and investors.A Standardized ContractAn exchange-traded futures contract specifies the quality, quantity, physical delivery time and location for the given product. This product ca
