Glossary - ChicksX

Futures are financial contracts obligating parties to buy or sell assets at predetermined prices on a specified future date.

Futures are financial contracts that require the buyer to purchase, or the seller to sell, an asset at a predetermined price on a future date. These contracts are commonly used for commodities, currencies, and financial instruments. They enable traders to hedge against price fluctuations or speculate on price movements. Unlike options, futures contracts obligate both parties to execute the transaction on the expiration date. They are traded on exchanges and are standardized in terms of quantity, quality, and delivery time. This standardization ensures liquidity and transparency, making futures a popular tool in traditional and crypto markets.