Futures Contract

This Issue in United States

Concept of Futures Contract in Futures Trading

In this context of financial law, the following is a definition of Futures Contract: An agreement to purchase or sell a commodity for delivery in the future: (a) at a price that is determined at initiation of the contract; (b) that obligates each party to the contract to fulfill the contract at the specified price; (c) that is used to assume or shift price risk; and (d) that may be satisfied by delivery or offset.