What is a futures contract?
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Futures contracts are financial contracts that obligate two or several parties to buy one or several financial assets at a predetermined time and price.
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The asset must be traded by the buyer or seller at the price specified upon agreement, irrespective of the actual price of this asset at the time the contract enters into force.
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The assets that may be designated in a futures contract include commodities and financial instruments. Futures contracts are deemed a profitable investment tool as they allow the investor to fix the price of a particular asset and evade price fluctuations.
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Trading futures contracts in the form of CFDs does not require the actual receipt of commodities, since traders can instead speculate on the price changes of these commodities. Futures markets include: bonds, energy, currencies, cryptocurrencies, and many more.
