Investor Glossary-futures contractInvestor Glossary-futures contractInvestor Glossary-futures contractInvestor Glossary-futures contractInsightful stock market charts - Click here
investor
Categories    # 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 Contract

The HTML to link to this page
 

The futures contract is a type of forward agreement, an agreement to buy or sell an asset at a pre-arranged future time and price. The futures contract is standardized for trade on an exchange, such as the Chicago Mercantile Exchange. Standardization of the futures contract specifies a quantity of the asset, the delivery month, the last day of trading, and other essential terms. Delivery on a futures contract is rare. Most futures contract positions are closed out before the last day of trading. The futures contract is used with several types of commodities, including raw materials and agricultural products, as well as financial assets such as interest rates and foreign exchange. The first futures contract traded on the Chicago Board of Trade in 1865.



Rate this futures contract definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: labor relations, balance sheet, VIX, implied volatility, current ratio, reverse mortgage, risk management, minority interest, option premium, inflation, EBITDA, average price per share, ex-dividend date, annual return, 144a, wholly-owned subsidiary, irrevocable trust, Key Rate Duration, APR, stock split, debt service coverage, deferred tax, 1031 exchange, LIBOR, real GDP, Zero Cost Collar, liquidity ratio, 1035 exchange, FTSE, phantom income, covered put, in escrow, stock market close, per diem, margin rate, open position, quality assurance, dividends payable, deferred revenue, required rate of return, FICO score, retained earnings, diluted share, 401a, class C shares, ex-dividend, command economy, limit order, cancelled check


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Home | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use