A futures contract is a standardized agreement to buy or sell a certain amount of a commodity, currency, or other asset at a set price on a future date. Futures contracts are traded on futures exchanges, and they allow investors to hedge against price risk or to speculate on the future price of an asset.
There are many different types of futures contracts, including contracts for agricultural commodities, metals, energy, and financial instruments. Futures contracts are typically used by large institutional investors, but they can also be used by individual investors.