Futures

Futures are financial contracts that agree to buy or sell an asset at a predetermined price on a specific future date. They are used by businesses and investors to hedge against price changes or to speculate on market movements. For example, a farmer might sell futures to lock in a price for their crop, protecting against a potential price drop, while a trader might buy futures expecting prices to rise. These contracts are standardized and traded on exchanges, making them a flexible tool for managing risk or seeking profit based on anticipated price changes.