Practical Law Glossary Item 4-603-8085 (Approx. 3 pages)
Glossary
Futures Contract
A derivatives contract for the sale and purchase of a specified asset or basket of assets at a specified price on a specified future date. Futures contracts are similar to forward contracts, however, futures contracts include standardized terms and are traded on registered exchanges, whereas forward contracts are bilaterally negotiated over-the-counter (OTC) derivatives.