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When buyer and seller agree to settlement at a future date it is called future contract.
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. Both seller and buyer has rights and obligations. The future contract is signed by giving an amount called caution deposit(margin).
Its a contract between two parties, decides to buy/sell assets at specific price and date
Futures contract is the deal which has to be executed before the specified or expiry date with agreed price. The buyer and seller has the rights to buy and sell the assets respectively with obligations.
Future Contract is when buyer and seller get agreed to deal on particular price and do the settlement on or before the expiry date
and the difference of the price on which the contract has been made will be credited or debited on day to day basis
is called MTM ( Mark to Market )
Future Contract becomes very useful when you are very sure about the price moment but you dont have enough money
then also you can do trading in big quantity by giving nominal margin and your order will be get placed
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