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futures contract

futures contract

3 6.2
An agreement to trade things such as oil or shares at a fixed price on a future date
  • noun
  • /ˈfjuːtʃərz ˈkɒntrækt/
  • Specialized
translation icon : contrato de futuros
  • Throughout, the consumer buys oil normally and never takes delivery on the futures contracts.
  • position on the futures contract
  • futures contracts on the CPI
  • index futures contract

So thus the May futures contract has gone negative.

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Examples

  • The ultra T-bond futures contract would thus have become the main instrument for hedging the long end of the market.

    Academic text (2017)
  • An index futures contract would be used as an instrument of monetary policy.

    Academic text (1992)
  • So thus the May futures contract has gone negative.

  • Bottom line, though, you can sell futures contracts without buying them first.

    Blog text (6)
  • There is no such thing as a guaranteed profit on a futures contract.

    Blog text (6)
  • Consider, for example, a futures contract for 1,000 barrels of crude oil for delivery six months from now.

    Academic text (2001)
  • This pushed more traders into the futures market, where they sold futures contracts as a hedge against falling stock prices.

  • The US Treasury bond futures contract, one of the world's most actively traded futures contracts, is used extensively to hedge long-term interest rate risk.

    Academic text (2017)
  • In regard to the motives underlying futures contracts, we can distinguish between a hedging motive and a speculative motive.

    Academic text (1992)
  • Investors often use a futures contract to lock in prices for commodities like corn before the next harvest.

Synonyms

future
vsfutures contract
  • Specialized
76 7.9

A contract to buy or sell something later at a fixed price

includes the explicit option to resell the agreement before final settlement
futures
vsfutures contract
  • Specialized
8 6.3

An agreement to buy or sell something later at a fixed price

emphasizes that an agreement can be traded before settlement

Antonyms

spot market
  • Specialized
2 5.1

A place where people buy and sell things like oil or currency to be delivered right away

Surface Forms

Morphology

future + contract

The phrase is directly compositional: 'contract' (an agreement) modified by 'futures' (relating to a future date or to futures trading), so a learner who knows the constituents can infer it is an agreement to buy/sell at a later date. While the precise market-specific features of a traded futures instrument are technical, the central meaning is transparently derived from the parts.

Etymology

Futures contract comes from old farm and market deals where a farmer and a buyer agreed on a price now for crops to be delivered at harvest. The word futures points to the 'future' delivery date and contract is the written promise, so the phrase means an agreement to 'buy or sell' a set amount at a set price later.