A contract for assets (especially commodities or shares) bought at agreed prices but delivered and paid for later.
the existence of futures contracts allows sellers or buyers to hedge against risk
Example sentencesExamples
The size of the initial margin deposit will vary by type of livestock futures contract and the price level.
The October average daily closing price for December Chicago Board of Trade futures contracts will determine the harvest price for corn crop revenue coverage.
You, the producer may then lock-in that price by selling a December corn futures contract through a broker.
When banks bought gilts or German bonds whose prices were falling, their systems automatically sold futures contracts in similar bonds to hedge their losses.
In Europe, when futures contracts have traded simultaneously on an exchange floor and on an electronic network, the liquidity has rapidly migrated online.
Definition of futures contract in US English:
futures contract
noun
Finance
An agreement traded on an organized exchange to buy or sell assets, especially commodities or shares, at a fixed price but to be delivered and paid for later.
the existence of futures contracts allows sellers or buyers to hedge against risk
Compare with forward contract
Example sentencesExamples
The size of the initial margin deposit will vary by type of livestock futures contract and the price level.
When banks bought gilts or German bonds whose prices were falling, their systems automatically sold futures contracts in similar bonds to hedge their losses.
The October average daily closing price for December Chicago Board of Trade futures contracts will determine the harvest price for corn crop revenue coverage.
You, the producer may then lock-in that price by selling a December corn futures contract through a broker.
In Europe, when futures contracts have traded simultaneously on an exchange floor and on an electronic network, the liquidity has rapidly migrated online.