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Futures contract

2:29

What is a Futures Contract?

2:25

Calculating Futures Contract Profit or Loss

2:46

Futures Contracts Compared to Forwards

3:33

What is a Futures Contract? | Where Do I Start?: Futures

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What is a Futures Contract

In finance, a futures contract is a standardized forward contract, a legal agreement to buy or sell something at a predetermined price at a specified time in the future. The asset transacted is usually a commodity or financial instrument. The predetermined price the parties agree to buy and sell the asset for is known as the forward price. The specified time in the future—which is when delivery and payment occur—is known as the delivery date. Because it is a function of an underlying asset, a futures contract is a derivative product.
    • Types 

    • Origin 

    • Margin 

    • Settlement − physical versus cash-settled futures 

    • Pricing 

    • Futures contracts and exchanges 

    • Futures traders 

    • Options on futures 

    • Futures contract regulations 

    • Forward contracts 

    • Futures versus forwards 

    • U.S. Futures exchanges and regulators