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What are futures?

Vladimir Kulinich
Vladimir Kulinich
March 27, 2013
What are futures?

Every trader is familiar with such a term as futures. About what futures, our article will tell.

Futures is an agreement (contract) for the sale and purchase of a certain asset in a certain quantity and on a specific date in the near future at the price established today.

The seller and the buyer take part in this transaction. The buyer is obliged to buy the asset in a specific period, the seller must make the sale in the same period. That is why these obligations of the two parties are stipulated by the type of asset itself and its size, the price of the transaction and the timing of its execution.

The term "futures" (from the English word future - that is, the future) - implies a contract that consists in the delivery of a certain product in the future. This contract specifies the date when this product must be delivered. Before the expiration of the agreed period, you can cancel your obligations by buying (if you sold it first) or selling (if you bought it first) a specific futures.Many traders who trade futures have such contracts for several hours or even several minutes.


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