FINOSUTRA

Future contract !!!!!!!!!!!!!!!!!! What are future contract Derivative. Futures markets were innovated to overcome the limitations of forwards. A futures  contract is an agreement made through an organized exchange to buy or sell a fixed  amount of a commodity or a financial asset on a future date at an agreed price. Simply,  futures  are  standardised  forward  contracts  that  are  traded  on  an  exchange.  The  clearinghouse associated with the exchange guarantees settlement of these trades. A  trader, who buys futures contract, takes a long position and the one, who sells futures,  takes a short position. The words buy and sell are figurative only because no money or  underlying asset changes hand, between buyer and seller, when the deal is signed Future Contract. It is important to understand what actually futures prices indicate?  If we say  May 2020 ind...