
Futures Contacts as a Trading Instrument – Simple Description
The stock market is not that easy. There are a lot of terms that are unclear for beginners. Especially, the term of futures contracts. Here we are to describe to you how the stock market and world economics works. So, today we will talk with you about the futures – what is this, where is it used and so then. Let’s start.
Definition
futures contract, or futures is a standardized contract on buying or selling something on the current prices, regardless or the price changes. For example, if a farmer wants to buy seeds, but he is not sure whether he will have enough money to buy it in winter, he can buy a futures contract on seeds on summer prices in summer, and then buy it in winter for the summer prices, regardless of the current prices on the market. Futures trading is very popular...