Futures

Futures are standardized financial contracts that obligate the buyer to purchase, or the seller to sell, an underlying asset at a predetermined price on a specific date in the future. These derivatives are traded on organized exchanges, ensuring transparency and regulatory oversight, and can cover a wide array of assets including commodities (like oil or gold), financial instruments (such as stock indices or interest rates), and currencies. Unlike options, which grant the holder the *right* to buy or sell, futures contracts impose a *binding obligation* on both parties.