Definition, Meaning & Synonyms
futures
noun
ˈfjuːtʃərz
Definition
Futures are contracts to buy or sell an asset at a predetermined future date and price.
Examples
- Investors trade futures to speculate on the price movements of assets.
- Many farmers use futures to lock in prices for their crops before harvest.
Meaning
Futures provide investors and traders with a way to hedge against price fluctuations in various markets, including commodities, currencies, and financial instruments.
Synonyms
- contracts
- derivatives
