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future contract is a contract were a buyer and seller agrees to makes a settlement in future.
Future contracts are deal happen today and execute on the future settlement date. Here the profit is based on the difference between executed deal price and settlement date price.
In a futures contract , the seller has the right to sell,and the buyer has the right to buy before or on a particular date. Price is agreed, the execution will be held later on . the remaining balance will be settled on day to day basis. there will be a caution deposit in that contract.<b></b><i></i><u></u>
<span style=”color: #777777; font-family: ‘Roboto Slab’;”><span style=”font-size: 13px;”>future contract is a contract were a buyer and seller agrees to makes a settlement in future with obligations.</span></span>
Future Contract – is one where a deal happens currently and settlement happens in a future date. Both seller and buyer signs the contract as the buyer gets the rights to buy and seller gets the right to sell. Both pay a margin to the exchange. The contract has an expiry date and proposed price. On the expiry date the settlement should be done even if one of the parties approach the exchange.
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