Futures Contract

This is sales contract for a certain amount of standard goods at a specified future date, at a price which is set at the time of contracting. Goods, for which the futures contract is for are called the underlying assets. During the finalisation of a futures contract, there is no transfer of the underlying asset or payment for it. Only payment for the margin is needed, it is necessary for a cash deposit to finalise the futures contract. The execution of deals with futures guarantees the futures exchange (see). Begin to get acquainted with futures by reading the book “Getting started in futures” by Todd Lofton.

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