What is Futures contract?

[Kumarasamy]

<p style=”text-align: center;”>The sellers and buyers both have  rights to obligation to execute order and money settlement has takes place on day closing basis.</p>

[SHREYANS BOTHRA]

Future contracts are the contracts agreed by the buyer and seller to buy and sell the product on the future date at decided price. This is done to minimise the risk of price fluctuation. Cash settlement is made on the settlement date.

[Deepa]

Future contract is nothing but a deal take place today but settlement of the transactions take place in future

[P Vijay]

It’s a contractual obligation to buy/sell a share at a certain price (decided currently) for a future date (expiry) – last thursday of the month

[Nishad]

The parties initially agree to buy and sell an asset for a price agreed upon today (forward price) with delivery & payment occurring at a future point on delivery date, because it’s a function of an underlying asset

A future contract is a derivative product

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