Answer: A standardized legal agreement to buy or sell an asset at a set future date
Notes: A futures contract is a standardized legal agreement traded on regulated exchanges to buy or sell a specific asset at a predetermined price on a fixed future date. Futures contracts are used for commodities and financial instruments. The exchange standardizes terms such as quantity, quality, and delivery date. Exchanges guarantee contract performance through a clearing house, reducing counterparty risk. Futures are primarily used for hedging and speculation.
