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What is Understanding Futures Contracts Explained about?
A futures contract is a legal agreement to buy or sell an asset at a predetermined price at a specified future date. Futures contracts are standardized and traded on exchanges. There are two types of participants in futures markets: hedgers, who use futures to guarantee purchase or selling prices of assets to reduce risk, and speculators, who trade futures contracts to profit from anticipated price changes of underlying assets without having interest in the assets themselves.
- Author
- Zubaria Bashir
- Language
- EN