What is Futures Contracts
Futures contracts are formal agreements wherein two parties commit to buying or selling an underlying commodity, asset, or security at a predetermined price on a specific future date. These contracts are actively traded on regulated exchanges, ensuring ample liquidity and transparency for participants. They are widely used by market participants for hedging against adverse price movements and also as instruments for speculative trading, allowing investors to capitalize on anticipated market trends. This dual functionality makes futures contracts indispensable tools for navigating volatile financial markets