Discipline: Economics

Futures, or futures contracts, are contracts that allow their holders to buy or sell a certain security or currency on a future date, which is called the final settlement date, or the delivery date.

Unlike an options contract, a futures contract has to be exercised. In other words, it is not optional for the holder of the contract to not buy or sell the security or currency in question.

Also see: derivatives, forward contract, options, swaps


Facebook Twitter