What is Futures contract?

[Ganesh]

Future contract is a contract where a buyer and a seller agrees for a deal i.e to buy and sell some shares at a price on a future date. Here both buyer and seller have rights and obligations.

[Guru]

<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>Future contract is a contract to buy/sell on the said day and both have obligation ( Mutual agreement) to executed the contract.</p>
<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>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</p>
<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>Caution deposit is being collected to safe guard both parties</p>

[Sriram Raghavendran]

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.

[Gokul Ramachandran]

Futures contract is a trading instrument where the trade happens at a future date called expiry date but the deal happens now. Both the buyers and sellers have rights and obligations. MTM settlements will be done everyday to the party involved.

[Priya Vignesh]

The buyer and the sellers makes the deal but not executing it on the same day, the settlement  is done on the expiry date/maturity date. In this future contract both the buyers and the sellers gets rights to buy and sell in the market.

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