How Futures Contracts Work: A Comprehensive Guide to Trading and Hedging in Finance
What are Futures Contracts? Futures contracts are standardized agreements to buy or sell an underlying asset at a predetermined price on a specific date in the future. Unlike forward contracts, which are customized and traded over-the-counter (OTC), futures contracts are traded on regulated exchanges such as the Chicago Mercantile Exchange (CME) or the Intercontinental Exchange