trading
futures
Financial contracts obligating the buyer to purchase, or the seller to sell, an asset at a predetermined future date and price.
Example
"Farmers use futures contracts to lock in prices for their crops before harvest."
💡 Memory Tip
FUTURES are contracts about the FUTURE price of something. You're locking in tomorrow's price today.
Etymology
From 'future' — contracts that deal in future prices of assets.
Common Misspellings
futuersfutursfututresfuturres
Related Terms
See Also
derivatives