Futures
Futures are derivative contracts that create an agreement between two parties to buy or sell an underlying asset at a pre-agreed price and date. These contracts obligate the buyer to purchase, and the seller to sell, the underlying securities, which can include stocks, bonds, interest rates, currencies, and commodities. Futures are commonly used for hedging risks or for speculative purposes, as they allow investors to profit from price movements in the underlying asset without actually owning it.
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