Futures Contract
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Definition:
A futures contract is an exchange-traded derivative described as a promise to buy specific assets at a pre-determined price on a specified future date. Futures contracts are traded on future exchanges and convey the obligation to the transfer of assets on the settlement date. A clearing house guarantees contracts executed on regulated future exchanges as a way to minimize counterparty risk.
Related Concepts:Clearing House
Commodity Futures Trading Commission
Hedge
Margin
Available Positions Related to Futures Contract: |
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