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future contract is a contract were a buyer and seller agrees to makes a settlement in future
In “futures” contract, the buyer/seller agrees to buy/sell shares on the expiry date of the contract.
The settlement will be done only at the end of the month.But, the change in price will be given/taken from buyer/seller on day to day basis. Both buyer and seller have obligation. A caution deposit is collected from buyer/seller.
Futures contract is where the deal is made now and the settlement is made in the future. Both buyers and sellers have rights and obligations.
A future contract is an agreement between the buyer and seller where the deal is made on a agreed price and the settlement happens in the future on the maturity date. Here, the buyer and seller have the rights to buy and sell respectively and both have the obligations to settle.
Example – The seller gives the right to the buyer to buy at 100; if the price goes above 100, then it is a profit for the buyer but if the price goes below 100, then it is a profit for the seller.
Future contract is a contract to buy/sell on the said day and both have obligation ( Mutual agreement) to executed the contract.
Buyer gets benefit in case of, price is lesser that agreed price and Seller gets benefit in case of, price is higher that agreed price
Caution deposit is being collected to safe guard both parties.
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