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In the world of finance, we often come across the term "futures contracts". These contracts refer to agreements made on a commodity futures exchange, where individuals or institutions trade in financial instruments or physical commodities. Essentially, it is a way to buy or sell these assets at a predetermined price in the future. This concept is crucial in understanding how markets operate and how investors can manage risk in their portfolios. So, let's dive deeper into the world of futures contracts and their role in the financial world.
