Finance Terms: Futures Contract
Welcome to the world of futures contracts – a fascinating and intricate way of trading commodities, securities, and various other assets. This financial instrument allows investors to buy or sell an underlying asset at a predetermined price and date in the future. In this article, we will be discussing everything from the basics of futures trading to strategies for successful management of risk and pitfalls to avoid.What is a Futures Contract?In a futures contract, two parties agree to buy or sell an underlying asset at a pre-determined price on a future date. This agreement is legally binding, and both parties…