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- Futures work as follows12345:
- Futures are contracts to buy or sell an underlying asset at a future date.
- The underlying asset can be a commodity, security, or other financial instrument.
- Futures lock in the current price and define the fixed cost of the asset.
- Buyers are obligated to buy, and sellers are obligated to sell, even if the price goes against the trade.
- Futures allow speculation on the direction of an asset using leverage.
Learn more:✕This summary was generated using AI based on multiple online sources. To view the original source information, use the "Learn more" links.Futures are contracts to buy or sell a specific underlying asset at a future date. The underlying asset can be a commodity, a security, or other financial instrument. Futures trading requires the buyer to purchase or the seller to sell the underlying asset at the set price, whatever the market price, at the expiration date.www.investopedia.com/terms/f/futures.aspFutures contracts lock in the current price of a commodity or stock and define the current fixed cost of the underlying asset and its expiry date. These contracts obligate the buyer to buy and the seller to sell, even if the price goes against the trade.finbold.com/guide/futures-trading/Futures are derivative contracts to buy or sell an asset at a future date at an agreed-upon price. Futures contracts allow players to secure a specific price and protect against future price swings. You can buy futures on commodities like coffee, stock indexes like the S&P 500 or cryptocurrencies like Bitcoin.www.nerdwallet.com/article/investing/started-future…Futures work by locking in the current market price and setting it as the fixed price at which an underlying asset will be exchanged later on. At the future date – on or before expiry of the contract – the market price, likely, will be different. The agreed-upon price would then be either higher or lower than the new market price.tastytrade.com/futures/what-are-futures/Futures contracts are financial derivatives that oblige the buyer to purchase some underlying asset (or the seller to sell that asset) at a predetermined future price and date. A futures contract allows an investor to speculate on the direction of a security, commodity, or financial instrument, either long or short, using leverage.www.investopedia.com/terms/f/futurescontract.asp - People also ask
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