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Tagged: Cash settlement, Derivatives, Futures, Physical Settlement
A contract which will be executed by two persons involved in the contract on future fixed date is called future contract.
Contracts which are signed today to be executed at a future date is called future contract and it will be signed between the buyer and seller on a particular instrument.
The seller and buyer agree to execute a deal in future date at agreed price. they have both rights and obligation to buy or sell.
Futures contract is the most common type of derivative . It is an agreement between two parties to sell an asset at a fixed price in a future date .
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