What Is Futures?

In quantitative finance, Futures are standardized financial contracts that obligate the buyer to purchase an asset (or the seller to sell an asset) at a predetermined future date and price. Futures contracts are traded on organized exchanges and can be based on various underlying assets, such as commodities, currencies, or indices.

Futures contracts are often used for hedging, speculation, or price discovery purposes. They allow market participants to manage their exposure to price fluctuations and take advantage of potential profit opportunities.

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