What is futures trading? A futures contract is simply an agreement between two parties to trade a specific asset at a specified futures time. Each futures contract must contain the following elements:
Underlying asset (often called underlying asset): This is the “source” of value. A futures contract can be applied to commodities, stocks, interest rates, even digital currencies.
Date due.
Settlement method, i.e. whether the seller needs to deliver the actual underlying asset when the futures contract expires. Or just get a quote for the relevant cash position?
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