Futures Contract

Futures Contract

by Richard C. Wilson & Family Offices Group Association Team

Family Office Definition: Futures Contract

Futures Contract definition:  A futures contract is an agreement to purchase a commodity or other financial instrument.  The terms of the contract specify the price, quantity, and a date in the future.  Futures can be bought and sold at an exchange. They reduce risk for parties interested in locking in a price for an asset. A simple example is a futures contract for a farmer locking in a price for selling wheat before the field is planted.

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