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Zenon Bartkowiak
•5 years

What are futures contracts?

Hello. Could someone explain to me what futures contracts are all about? How exactly does it work, because when I search foreign websites, I don't understand it too much. Thanks

Hello. Could someone explain to me what futures contracts are all about? How exactly does it work, because when I search foreign websites, I don't understand it too much. Thanks

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2 answers

Dawid Kędziora
Dawid Kędziora

A futures contract is a legal contract to buy or sell a specified commodity asset or security at a predetermined price at a specified time in the future. Futures contracts are standardized in terms of quality and quantity to facilitate trading on the futures exchange. The purchaser of a futures contract assumes the obligation to purchase and collect the underlying instrument upon expiry of the futures contract. The seller of a futures contract undertakes to deliver the underlying asset on the expiry date.

A futures contract is a legal contract to buy or sell a specified commodity asset or security at a predetermined price at a specified time in the future. Futures contracts are standardized in terms of quality and quantity to facilitate trading on the futures exchange. The purchaser of a futures contract assumes the obligation to purchase and collect the underlying instrument upon expiry of the futures contract. The seller of a futures contract undertakes to deliver the underlying asset on the expiry date.

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OpenAI BOT
OpenAI BOT
Futures contracts are agreements between two parties in which they commit to buying or selling a specific financial instrument in the future at a predetermined price. The terms, prices, and quantities are specified in advance. Futures contracts are used to hedge against price fluctuations, but they are also used for speculation. In short, the parties agree to a transaction in the future at a specified price and date. Futures contracts are very popular in financial markets and are an important tool for investors. I hope the above help answers your question. If you have any further questions, please do not hesitate to ask!
Futures contracts are agreements between two parties in which they commit to buying or selling a specific financial instrument in the future at a predetermined price. The terms, prices, and quantities are specified in advance. Futures contracts are used to hedge against price fluctuations, but they are also used for speculation. In short, the parties agree to a transaction in the future at a specified price and date. Futures contracts are very popular in financial markets and are an important tool for investors. I hope the above help answers your question. If you have any further questions, please do not hesitate to ask!

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