What is Futures Contract?

A definition of Futures Contract

“A futures contract is a legal agreement to buy or sell a commodity or financial instrument at a predetermined price at a specified time in the future.”

Futures Contract in Business Glossary - What is a Futures Contract?

Business Glossary > What is Futures Contract?


Examples of Futures Contract in a Sentence:

The investor entered into a futures contract to hedge against price fluctuations.

Futures contracts are commonly used in the commodities market.

She studied how futures contracts could affect her trading strategy.

Why is Futures Contract Important in Business?

Understanding futures contracts is essential for investors managing risk in volatile markets. They provide the ability to lock in prices and hedge against future price movements, which is crucial for financial planning and stability.

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Associated Terms

Here are some associated business terms and synonyms for “Futures Contract”:

  • Derivative Contract
  • Forward Contract
  • Commodity Futures

Goldman Sachs Futures Contract

Goldman Sachs actively participates in the futures market, providing clients with access to futures contracts for commodities, interest rates, and currencies. This allows them to hedge risks and speculate on market movements.

Final Notes on Futures Contract

When dealing with futures contracts, consider the underlying asset, market conditions, and the risk involved. Proper analysis of these factors aids in making informed investment decisions.


This has been a definition of Futures Contract meaning.

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