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In finance, a futures contract is a standardized contract, traded on a futures exchange, to buy or sell a certain underlying instrument at a certain date in the future, at a pre-set price. The future date is called the delivery date or final settlement date. The pre-set price is called the futures price. The price of the underlying asset on the delivery date is called the settlement price. The futures price, naturally, converges towards the settlement price on the delivery date.

A futures contract gives the holder the right and the obligation to buy or sell, which differs from an options contract, which gives the buyer the right, but not the obligation, and the option writer (seller) the obligation, but not the right. In other words, the owner of an options contract can exercise (to buy or sell) on or prior to the pre-determined settlement/expiration date. Both parties of a "futures contract" must exercise the contract (buy or sell) on the settlement date. To exit the commitment, the holder of a futures position has to sell his long position or buy back his short position, effectively closing out the futures position and its contract obligations.

Futures contracts, or simply futures, are exchange traded derivatives. The exchange acts as counterparty on all contracts, sets margin requirements, etc.

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@sayhellomel Yeah I mean seriously, us seniors don't have anything to worry about, like our futures or anything. No yeah, of course not.
Cathyydubs (Catherine Wang) Wed, 16 Dec 2009 00:31:54 -0000
@sayhellomel Yeah I mean seriously, us seniors don't have anything to worry about, like our futures or anything. No yeah, of course not.
Blog Post: High Velocity Market Master System Can Trade Forex, Stocks, Futures,Crude Oil, Options, Gold%2... http://bit.ly/4utASQ
nichebk (Sandi) Wed, 16 Dec 2009 00:31:10 -0000
Blog Post: High Velocity Market Master System Can Trade Forex, Stocks, Futures,Crude Oil, Options, Gold%2... http://bit.ly/4utASQ
Talking to TripAdvisor about the best Tourism conference to speak at in Oz in 2010. Traveltech, No vacancy, Tourism Futures, Eyefortravel ?
paul_baron (Paul Baron) Wed, 16 Dec 2009 00:28:38 -0000
Talking to TripAdvisor about the best Tourism conference to speak at in Oz in 2010. Traveltech, No vacancy, Tourism Futures, Eyefortravel ?
FOCK TOP!!! LOOOOL RT @dezjeff: Mes futures bottes haha http://twitpic.com/toh11
amelieamilli (Amelie B-O) Wed, 16 Dec 2009 00:21:49 -0000
FOCK TOP!!! LOOOOL RT @dezjeff: Mes futures bottes haha http://twitpic.com/toh11
Mes futures bottes haha http://twitpic.com/toh11
dezjeff (Jeff Dez Frenette) Wed, 16 Dec 2009 00:18:41 -0000
Mes futures bottes haha http://twitpic.com/toh11
@hd_gold_futures ちょっと金はあげすぎましたよねー(笑)
kabu_etf (小松・丸吉) Wed, 16 Dec 2009 00:17:22 -0000
@hd_gold_futures ちょっと金はあげすぎましたよねー(笑)

 
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Base Metal - Providing futures prices, charts, news, reports and research. Official LME price distributor.
Meta Description: [ Base Metals Prices and News. London Metal Exchange (LME) Prices, Copper price charts, Aluminium prices, Nickel, Zinc and Lead prices,historical charts and data, graphs, current news reports & base metals research. ]

Futures Industry Association - Membership details and regulations. Publications and calendar of events.
Meta Description: [ The FIA is the only association representative of all organizations that have an interest in the futures market. ]

Futures Magazine Group - News, analysis, and strategies for futures, options, and derivative traders. Includes charts and daily columns.
Meta Description: [ Commodities, Futures, options, forex, stock and derivative traders who use technical analysis or fundamental information on the markets read Futures Magazine for increased returns and profits in trading. Futures, options, forex, stock and derivative traders are educated on using technical analysi... ]

New Bond Future Design - Description of a new bond future that would prevent squeezes and so allow a contract to better represent its underlyings.
Meta Description: [ A new design of bond future that would prevent squeezes and so allow the contract to better represent its underlyings. ]

SMOTASS - Covering futures trading and commodity links. Features tools, indicators and charts.
Meta Description: [ Successful Methodical Online Traders Accessing Speculative Sites-- Commodity Links, Daily Price Indicators, Hot Charts, COT Graphs, & MORE! ]

X-Pat Trading, LLC - Proprietary trading group. Focus on interest rate, cash and futures markets at the Chicago Mercantile Exchange, Chicago Board Of Trade and on electronic platforms provided by Eurex and Euronext-Liffe.
Meta Description: [ X-Pat's trading strategies are employed in the interest rate, cash and futures markets at the Chicago Mercantile Exchange, Chicago Board Of Trade and on electronic platforms provided by Eurex and Euronext-Liffe. ]

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Base Metal - Providing futures prices, charts, news, reports and research. Official LME price distributor.
Meta Description: [ Base Metals Prices and News. London Metal Exchange (LME) Prices, Copper price charts, Aluminium prices, Nickel, Zinc and Lead prices,historical charts and data, graphs, current news reports & base metals research. ]

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Cartoon predicts the future 50 years ago. This is amazing insight!
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