Futures Market

A futures market is a financial exchange where people can buy and sell contracts to purchase assets, like commodities or financial instruments, at a predetermined price on a specific future date. This allows traders to hedge against price changes or speculate on future price movements. For example, a farmer might use futures to lock in a price for their crops before harvest, ensuring they know what they will earn. Conversely, an investor could bet on price fluctuations for profit. Futures markets help stabilize prices and provide opportunities for risk management in various industries.