What is futures contract?
A futures contract is a derivative product, it is also called as futures.It is a contract that obligates an organization or individual to buy or sell an asset. This asset can be a tangible or a financial instrument, a buyer can make the payment on a future date and seller can deliver the asset on a future date as well.A futures contract includes the detailed information about quality and quantity of an asset.Some buyers ask for physical delivery of an asset under a futures contract, on the other hand, some settle it in cash.Futures can also be useful in hedging or speculating the price movement of an underlying asset.
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