What are Futures Contracts?
|
|
 Most financial and real asset transactions occur in what is known as the spot or cash market, where the asset is delivered immediately (or within a few days). Futures or futures contracts, on the other hand, call for the purchase or sale of a financial or real asset at some future date, but at a price which is fixed today.
Futures contracts are divided into 2 classes, commodity futures and financial futures.
Commodity Futures
- Oil
- Various Grains
- Oilseeds
- Livestock Meats
- Fibers
- Metals and Wood.
Financial Futures
- Treasury Bills,
- Treasury notes and bonds,
- Eurodollar deposits,
- Foreign currencies and
- Stock indexes.
Related Articles:
|
