Markets & trading
A futures contract is a standardised agreement to exchange or financially settle an underlying exposure at a future date. Both sides carry obligations and post margin.
Make it click
Two parties agree today on the terms for a later delivery. The agreement changes value as market expectations move, and both sides must support their promise along the way.
Now put that into markets
Exchanges standardise contract size, quality, month and settlement. Clearing houses mark positions to market and manage margin.
Futures can hedge or create leveraged exposure to commodities, rates, currencies and indices. Contracts converge towards spot or settlement rules near expiry.
Check multiplier, tick, expiry, settlement, trading hours, margin and roll. A quoted price is not the cash amount at risk.
Daily losses can require additional cash and forced closure. Rolling contracts introduces basis and curve effects absent from a simple spot chart.
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