Futures contract, Financial Management

Futures Contract

It is an obligation to purchase or sell an asset at an agreed-upon price on an exact future date. The buyer commits himself or herself to buy the asset, and the seller commits himself or herself to sell the asset. Futures contracts are mostly traded on organized exchanges and changes in the value of the agreement are settled in cash each day. Futures contracts exist for currencies, commodities, stock indexes, and debt instruments.

Posted Date: 10/17/2012 3:22:55 AM | Location : United States

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