Futures contract: Difference between revisions
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* [[Clearing house]] | * [[Clearing house]] | ||
* [[Close out]] | * [[Close out]] | ||
*[[Contract]] | |||
* [[Currency futures]] | * [[Currency futures]] | ||
* [[Default]] | |||
* [[Derivative instrument]] | * [[Derivative instrument]] | ||
* [[Exchange]] | * [[Exchange]] | ||
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* [[Margin call]] | * [[Margin call]] | ||
* [[Open interest]] | * [[Open interest]] | ||
* [[Outturn]] | |||
* [[Over the counter]] | * [[Over the counter]] | ||
* [[Secondary market]] | * [[Secondary market]] | ||
Latest revision as of 01:07, 13 March 2023
Futures contracts are contracts stipulating the purchase or sale of commodities, currencies or securities of a specified quantity, at a specific price and on a predetermined date in the future.
Futures contracts tend to be standardised in terms of quantity, price and maturity periods.
They are written against an exchange clearing house and traded through the clearing house.
They also require a refundable up-front security payment (initial margin) and subsequent variation margin adjustments.
Because of their standardisation, futures contracts have a deep secondary market.
Their uses include hedging and speculation.
Often abbreviated to futures.
See also
- Basis
- Bond futures
- Clearing house
- Close out
- Contract
- Currency futures
- Default
- Derivative instrument
- Exchange
- Exchange traded
- Fixing instrument
- Forward contract
- Future-proof
- Hedging
- Initial margin
- Interest rate futures
- International Organization of Securities Commissions
- Margin
- Margin call
- Open interest
- Outturn
- Over the counter
- Secondary market
- Speculation
- STIR
- Swapnote
- Tick
- Variation margin
