Futures contract

A futures contract is an agreement between two parties.^[1] The buyer pays the seller today for the promise of the commodity at a future date.^[2] Futures contracts are traded in futures exchanges.^[3] The commodities can be things such as livestock, agriculture produce, metals, energy, and financial products.^[4] Trading futures can be profitable.^[4] But it is also complex and very risky.^[5] Instead of gaining a profit, an investor can lose the money invested.^[4] They could be required to pay more than they invested.^[5]

1. ↑ "Definition of 'Futures Contract'". The Economic Times. Bennett, Coleman & Co. Ltd. Retrieved December 9, 2016.
2. ↑ "What is a 'Futures Contract'". Investopedia. Retrieved December 9, 2016.
3. ↑ "Futures Trading Basics". TheOptionsGuide.com. Archived from the original on 18 July 2015. Retrieved 26 June 2015.
4. ↑ ^{4.0 4.1 4.2} "Futures Contract". InvestingAnswers, Inc. Retrieved December 9, 2016.^{[permanent dead link]}
5. ↑ ^{5.0 5.1} "Futures Markets Basics". U.S. Commodies Futures Trading Commission. Retrieved 26 June 2015.