futures contract
- An agreement bought or sold via an exchange where one party commits to selling or buying a certain quantity of a commodity at a given price on a predetermined date. This is also referred to as a future contract
- Due to his confidence in the market, he decided to invest in a futures contract for corn.
- The company signed a futures contract to protect against sudden increases in oil prices.
- The investor used a futures contract as a hedging tool to manage the risk of price fluctuations.
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