HomeDefinitionsCompareDebt Futures contractThe financial definition for Futures contract:A legally binding agreement to buy or sell a commodity or financial instrument in a designated future month at a price agreed upon today by the buyer and seller. Futures contracts are standardized according to the quality, quantity, and delivery time and location for each commodity. A futures contract differs from an option because an option is the right to buy or sell, while a futures contract is the promise to actually make a transaction. A future is part of a class of securities called derivatives, so named because such securities derive their value from the worth of an underlying investment. Similar MatchesBank Investment Contract (BIC)Bank Investment Contract (BIC)Interest guaranteed by the bank in a Interest over a specific time frame with a specific Interest. Bullet contractBullet contractA guaranteed investment contract purchased with a single (one-shot) premium. Related: Window contract. Cash settlement contractsCash settlement contractsFutures contracts such as stock index futures that settle for cash and do not involve delivery of the underlying. Further SuggestionsCommodity futures contractConditional sales contracts Contract Contract month Contractual Claim Contractual Intermediary Contractual plan Click to compare definitions of Futures contract Click to view definitions beginning fu |