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Options and Futures

Futures Contract

Futures contracts are a crucial aspect of financial markets, serving as legally binding agreements to buy or sell a commodity or financial instrument at a future date. These contracts are traded on specialized exchanges and are standardized based on the quality, quantity, and delivery specifications of the underlying asset. The price of the contract is the only variable, determined through open outcry trading on the exchange floor. It is important to understand the mechanics and potential risks of futures contracts in order to navigate the world of finance successfully.
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