What is a Futures Contract?

A futures contract is a legal agreement signed between two parties to buy or sell a particular commodity, asset, or security at a predetermined price and an agreed date in future. The payment and delivery of the commodity are made on the agreed future date. In a futures contract, the buyer is said to hold a long position or just long, while the seller is known to have a short position or just short.Futures Contract ExplainedIn a futures contract, the underlying assets could be commodities, stocks, bonds, currencies, crude oil, etc. When a buyer and seller enter into an agreement…
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