A market in which exchange-traded contracts commit buyers and sellers to the actual exchange of physical Commodities or financial instruments at a future date and at an agreed-upon price. Businesses that use commodities in the manufacture or production of their products often use the futures market as a hedge against future adverse price changes. Most futures traders, however, employ futures contracts for speculative investing. In either case, a contract that is resold prior to the contract month averts an obligation to take or make a delivery of the underlying asset. The futures market is regulated and overseen by the Commodity Futures Trading Commission (CFTC). See derivative.
Browse by Subjects
Exchange for Futures
Commodities Exchange Act
See All Related Terms »
American Psychological Association (APA):
Chicago Manual of Style (CMS):
Modern Language Association (MLA):