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Description

An agreement to buy or sell an asset at a specified future date for a price agreed upon today.

A futures contract is a legally binding agreement to buy or sell an asset at a set price at a future time, known as the delivery or expiration date. These contracts are standardised in terms of quality, quantity, and delivery time, with the specifics determined by the exchange on which they are traded. Futures are exclusively traded on exchanges, providing a regulated environment for hedging against price changes or speculating on future price movements of commodities, indices, currencies, or other financial instruments. This standardisation and exchange-based trading ensure transparency and liquidity in the market, making futures an essential tool for risk management in various sectors.

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