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Future |
Also found in: Legal, Encyclopedia, Wikipedia, Hutchinson | 0.04 sec. |
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Future A term used to designate all contracts covering the sale of financial instruments or physical commodities for future delivery on a commodity exchange. Future An incorrect term for a futures contract. A futures contract is an agreement to buy and sell an asset at a certain date at a certain price. That is, Investor A may make a contract with Farmer B in which A agrees to buy a certain number of bushels of B's corn at $15 per bushel. This contract must be honored whether the priceof corn goes to $1 or $100 per bushel. Futures contracts can help reduce volatility in certain markets, but they contain the risks inherent to all speculative investing. These contracts may be sold on the secondary market, but the person holding the contract at its end must take delivery of the underlying asset. How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content. |
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