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Futures Contract

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Description

A futures contract is a standardised financial agreement where both parties commit to buying or selling a specific asset at a predetermined price on a specified future date (delivery date).

A futures contract is a standardised agreement to buy or sell an asset like commodities, currencies, or indices at a future date for a price agreed upon today. Traded on exchanges, these contracts provide transparency and liquidity, used for both speculation and hedging. Futures contracts are pivotal for price discovery and risk management in various financial markets.

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