What are Futures?

Futures are derivative contracts where both the buyer and seller are obligated to buy or sell an underlying asset at a predetermined price on a specified future date. A Futures Contract is an agreement between the buyer and the seller to buy or sell a specified quantity of the underlying asset at a future date at a price agreed upon between them. The agreement sets the price and quantity in advance, and the trade must happen on the agreed date, no matter the market price. Futures are traded on exchanges and are marked to market daily, meaning their value is adjusted each day to reflect current market prices until the contract expires