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Futures contract

noun

Definitions

Noun
  1. 1
    A standardized contract, traded on a futures exchange, to buy or sell a standardized quantity of a specified commodity (or financial instrument) of standardized quality at a certain date in the future, at a stated price (the futures price).

    "He led the way with futures contracts (by which buyer and seller fix a price, immune from market fluctuations, for commodities that do not even exist at the time, such as crops yet to be sown) when these were exotic financial instruments few had hitherto tried."

  2. 2
    an agreement to buy or sell a specific amount of a commodity or financial instrument at a particular price on a stipulated future date; the contract can be sold before the settlement date wordnet

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