Dictionary
Dictionary
A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z
Futures
Definition
A futures contract is enforceable between a buyer (seller) and an established exchange or its clearinghouse in which the buyer (seller) agrees to take (make) delivery of a commodity or financial instrument at a specified price at the end of the contract life.
Using the term Futures :
Futures may be used to hedge of speculate on various commodities. Industrial players may utilize futures to lock-in a future price for a good they are producing. Speculators may try to profit off of future price moves they are expecting. This is much like the movie Trading Places with Dan Aykroyd and Eddie Murphy . . . Feeling Good Billie Ray!
Pay Special Attention To :
Be careful if a man named Mr. Beeks tries to sell you the crop report in advance of the public announcement. This is inside information and is illegal in the United States and many other developed futures markets throughout the world.
Rate this definition:
Related terms
Trading Places , Contango , Backwardation , Forwards
'Futures' appears in the definitions of these other terms:
Backwardation Contango Currency Risk Heating Degree Day Hedging Trading Places
