Financial Futures

Financial futures are contracts that obligate investors to buy or sell an asset, like stocks, bonds, or commodities, at a predetermined price on a specific date in the future. They are used to hedge against price fluctuations or to speculate on future price movements. For example, a farmer might use futures to lock in a price for their crops, ensuring they don’t lose out if prices drop. Conversely, investors might use them to profit from anticipated price changes, making financial futures a key tool in managing risk and investing strategies.