In financial terms, a futures contract is a type of contract that allows the investor to be able to buy a certain commodity at a given price but with delivery at a given point in the future. The futures contracts are also known under the name of “derivative contracts”, hence differentiating themselves from the usual stocks, bonds or certain type of warrants.

These contracts are standardized and most commonly, these must display all the following aspects: the type of the asset, the amount payable, the trading currency, the date of the delivery, and other aspects pertaining to the market fluctuation.