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Futures contract is making a deal on a commodity with the current market price and the settlement is to be done on a future date.Here the buyer has the rights to buy and the seller has the rights to sell and both have obligations.The idea in futures contract is that either the seller or the buyer will make money if there is a fluctuation in the commodity’s price on the future contract date.The futures contract can be signed by giving an amount called margin and it is generally equal to 10% of the commodity’s market value.
A futures contract is an agreement to buy or sell a particular commodity or financial instrument at a predetermined price at a specified time in the future.
future contract is about making deal for which settlement will be done in future and both sellers and buyers will have rights and obligation
Future market is nothing but dealing is taken place in current where settlements takes place in the future , both the buyers and sellers have obligations.
Futures is a deal which is made to be excuted at the end of the expiration date at the agreed price. For that agreement caution deposits should be paid.Money will be settled on day to day basis.we can either sell and buy the deal in the middle of the expiration date.Caution deposit will be settled at the end of the expiration date or when it is executed or when it is sold in the middle.
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