Glossary of Option Terms: Futures Contract
Futures Contract
Definition: The terms "futures" and "futures contract " are basically talking about the same thing. In particular, futures is more general and or could refer to the market by and large, while a futures contract refers only to the specific individuality of the underlying asset.
This contract, normally made on the futures exchange-trading floor, is used to buy or sell a particular commodity or financial device at a prearranged price in the future. Futures contracts detail the quantity and quality of the underlying asset; they are standardized to smooth the progress of trading on a futures exchange.
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