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A contract to be executed in future is known as future contract. In this the buyer has the rights to buy and the seller has the rights to sell.
Future contract is where the deal will be made now and the settlement happens on the maturity date mentioned in the contract.
Through this contract, Buyer will get the “Rights to Buy” and Seller will get the “Rights to Sell” the stocks for the agreed price mentioned in the contract.
Future Contract : This is a contract which happens between both the parties for a period of 3 months. They will come to an agreement that after the expiry of the contract the value of the particular stock would be selling at so and so price. if the criteria meets then those who gain will get the money from the one who had lost .
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