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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MarketWatch.com - MarketPulse

Staples sees 2008 sales growth in low single digits
Tue, 19 Aug 2008 11:22:56 -0000
NEW YORK (MarketWatch) -- Staples Inc. said Tuesday that it sees low single-digit sales growth and flat earnings per share for 2008, excluding a $38 million pretax charge in 2007 for a class-action settlement and items related to its acquisition of Corporate Express. Staples said it sees the Corporate Express merger adding slightly to earnings. Staples expects restructuring expenses for the deal to range from $30 million to $40 million in the back half of 2008, and to range from $50 million to $70 million in 2009. The second quarter was described as challenging and results were less than expected for the Framingham, Mass. office-supply retailer. It said second quarter per-share profit is expected to be down about 15%, with sales rising about 3%. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
Myriad Genetics swings to profit, plans strategic review
Tue, 19 Aug 2008 10:52:31 -0000
LONDON (MarketWatch) -- Biotechnology company Myriad Genetics Inc. said Tuesday that it swung to a net profit of $65.5 million, or $1.40 a share, in its fiscal fourth-quarter, from a loss of $7.8 million, or 18 cents a share, a year earlier. Revenue for the quarter jumped to $166.9 million from $45.5 million. The group said its results were boosted by a $100 million up-front license payment from Lundbeck for European marketing rights to Flurizan. The company also announced that its management will perform a comprehensive review, considering a variety of strategic alternatives for the company. The options include a possible corporate restructuring which would separate the molecular diagnostic business from the pharmaceutical business as independent operating entities, the group said.Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
PICC Property & Casualty posts 1H net loss on higher claims
Tue, 19 Aug 2008 10:26:20 -0000
HONG KONG (MarketWatch) -- China's largest non-life insurer by premiums, PICC Property & Casualty Co. , said Tuesday it posted a first-half net loss of 292 million yuan ($42.6 million), swinging from a profit a year earlier, owing to the settlement of damage-related claims related to the January to February snow storms and the Sichuan earthquake in May. PICC, which hold a 43.3% share of the non-life insurance market, reported net profit of 3.2 billion yuan in the six-month period ended June 30 last year. This year's result bettered average forecasts for a net loss of 1.09 billion yuan, according to a poll conducted by Dow Jones Newswires. Revenue for the six month period climbed 19% to 58.97 billion yuan, while net premiums increased 21% to 40.18 billion yuan. Payouts on claims totaled 30.48 billion yuan, up 40% from 22.19 billion yuan. The insurer did not propose an interim dividend. Last year it paid an interim dividend of 0.091 yuan per share. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.

Elliott Wave International NewsWire

Currency Traders: Get Elliott Wave Forex Forecasts Free
Mon, 18 Aug 2008 21:52:12 -0500
At Elliott Wave International, we have been forecasting the markets for 30 years. We can help you understand how the markets work and teach you a popular forecasting method that may help you formulate a trading strategy: Elliott wave analysis. It's a method many traders use, because it helps you to accomplish three crucial goals: Identify the trend, stay with it, and know when the trend is likely over. And you're in luck! Because from noon to noon on August 20 through August 27, you can have full, free access to Elliott Wave International's forex forecasts. Click for details.
The Fall Line-up Preview (In Commodities)
Mon, 18 Aug 2008 17:11:59 -0500
It's late summer, which means a boring TV schedule with nothing but reruns. If you're a Law & Order or CSI type, you might be longing for some good courtroom drama right now. Look no further than the August issue of Monthly Futures Junctures:  Senior Analyst Jeffrey Kennedy is the expert on the witness stand and you, the jury, learn the answers to the commodity market's toughest questions.
Why Are Oil Prices Falling? (Video)
Fri, 15 Aug 2008 20:28:29 -0500
Now that oil has taken a 25% dive off that peak (in less than a month!), people are asking – why is the price falling, and so fast? And that's a very good question. Did the global demand for oil suddenly take a u-turn? Is there peace in the Middle East? Have speculators shifted their attention to other markets? Watch this free video for an Elliott wave perspective.

FT.com - Commodities News and Market Data

Oil remains choppy amid storm threat
Mon, 18 Aug 2008 18:02:00 -0000
Oil prices were choppy while gold briefly recovered the $800 level after sinking to its lowest level for almost nine months on Friday
The Short View: Oil and stocks
Mon, 18 Aug 2008 20:22:00 -0000
John Authers on the impact of the falling oil price on other markets
Food and consumer groups get hedge smart
Sun, 17 Aug 2008 23:18:00 -0000
Companies are overhauling the way they buy and hedge commodities after being caught out by increases in the prices of raw materials that have squeezed industry margins and cut profits

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