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A standardized, transferable, exchange-traded Contract that requires Delivery of a commodity, bond, Currency, or stock Index, at a specified price, on a specified future date. Unlike Option, Futures convey an Obligation to Buy. The Risk to the holder is unlimited, and because the payoff Pattern is symmetrical, the Risk to the seller is unlimited as well. Dollars lost and gained by each Party on a futures Contract are equal and opposite. In other words, Futures trading is a zero-sum game. Futures contracts are Forward contracts, meaning they represent a pledge to make a certain Transaction at a future date. The Exchange of assets occurs on the date specified in the contract. Futures are distinguished from generic Forward contracts in that they contain standardized Term, Trade on a formal exchange, are regulated by overseeing agencies, and are guaranteed by Clearinghouse. Also, in Order to insure that payment will occur, Futures have a Margin requirement that must be settled daily. Finally, by making an offsetting trade, taking Delivery of goods, or arranging for an Exchange of goods, Futures contracts can be closed. Hedgers often trade Futures for the purpose of keeping price Risk in Check. also called Futures contract.

Related Terms: 45 Asset, ACH, Action, Buy, Check, Clear, Clearing, Call, CLO, Clearinghouse, Currency, Contract, Close, Delivery, Exchange, ECI, Forward, Futures, Futures contract, FIN, Guarantee, House, Hedge, Index, Margin, Mean, Obligation, Order, Option, OCC, Offset, PPO, Party, Pattern, Risk, Ring, Sell, Stock index, Settle, Transaction, Transfer, Term, Trade, Trading, Terms
Other Related Pages: Category: Futures Starting With: F
Semi Related Terms: 1176 CLICK HERE TO VIEW
10-Q, 10-K, 1035 exchange, 19c3 stock, Active asset, Allowance for depreciation, Alternative assets, Asset, Asset/equity ratio, Available assets, ACH, Asset management account, Automatic Clearing House, Automatic Funds Transfer, Average daily balance, Average daily balance method, Above par, Accrual bond, Accrual of discount, Accumulation bond, Agency bond, American Municipal Bond Assurance Corporation, American Stock Exchange, Amortization of premium, Asked price, Asking price, Asset-backed security, Asset swap, Assumed bond, At par, Authority bond, All or any part, Alternative order, At best, At call, Automated Order Entry System, Asian dollars, Adjustable rate preferred stock, Adjusted futures price, All-risks coverage, At risk, Asset acquisition, Asset class, Asset financing, Add-on service, Abstract of title, Action to quiet title, Adhesion contract, As is, Assignment to creditors, Attorney in fact, Adjustment date, Affordability index, Amortization term, Asset-based finance, Asset-based lending, Asset conversion loan, Assignment of mortgage, A shares, Asset allocation fund, Assets under management, Asset turnover, Average price per share, Aggregate exercise price, American option, American-style option, Asian option, At the money, Average option, Age-weighted plan, Across the board, Action, Additional paid-in capital, Average daily volume, Arbitrage house, Ad valorem, Arithmetic mean, Arms Index, After-hours trading, Against the box, At the bell, At the close, At the figure, At the full, At the market, At the opening order, Automated Pricing and Reporting System, Away from the market, Back pay, Below the line, Books of final entry, Books of original entry, Banking Act of 1933, Blank check, Bounced check, Baby bond, Bearer bond, Below par, Bid-to-cover ratio, Blanket bond, Block trade, Bond anticipation note, Bond Buyer, Bond circular, Bond crowd, Bond equivalent yield, Bond fund, Bond indenture, Bond market, Bond ordinance, Bond quote, Bond resolution, Bond swap, Brady bond, Bullet bond, Bullet contract, Bureau of Public Debt, Buy, Best-execution requirement, Block house, Brokerage house, Brought over the wall, Buying on margin, Buy limit order, Buy minus, Buy minus order, Buy on close, Buy on opening, Buy order, Buy stop order, Buy the book, Balance of payments, Board of Governors, Basis trading, Buying hedge, Breaking the syndicate, Bill of exchange, Bill of sale, Breach of trust, By the book, Balloon payment, Bank term loan, Benchmark risk, B shares, Buy and write, Benefit offset, Borrowed stock, Broad-base index, Buy-side, Blow-off top, Breadth-of-market theory, Beat the gun, Cancelled check, Capital asset, Cash asset ratio, Contra account, Contribution margin, Cost Of Goods Sold, Cost of sales, Credit order, Central assets account, Certified check, Check, Clear, Cleared date, Clearing, Clearinghouse funds, Call, Callable bond, Call date, Called away, Called bond, Call price, Call protection, Call risk, Catastrophe bond, CAT bond, Certificateless municipal bond, Certificate of Participation, CLO, Collateralized Bond Obligation, Collateralized Mortgage Obligation, Collaterized Loan Obligation, Combination bond, Committee on Uniform Securities Identification Procedures, Commodity-backed bond, Common stock equivalent, Consolidated bond, Conversion option, Conversion parity price, Conversion price, Corporate bond equivalent, Coupon bond, Credit risk, Current coupon bond, Call money rate, Clearing corporation, Clearing firm, Clearinghouse, Clearing member, Closed out, Code of procedure, Commission house, Contingency order, Contingent order, Contra broker, Contract broker, Crossed trade, Chicago Mercantile Exchange, Convertible currency, Currency, Currency convertibility, Currency fluctuations, Currency swap, Capitalization of income, Constant dollar GDP, Constant dollars, Consumer confidence index, Consumer Price Index, Cost of Living Adjustment, Cost-of-living index, Council of Economic Advisers, Current dollars, Cyclical stock, Cash and carry trade, Cash commodity, Cash price, Certificated stock, Chasing the market, Cheapest to deliver, Chicago Board of Trade, Commercial hedger, Commodities Exchange Act, Commodities Exchange Center, Commodity Exchange, Commodity futures, Commodity Futures Trading Commission, Commodity paper, Commodity pool, Commodity-product spread, Commodity Trading Advisor, Contract grades, Contract market, Contract month, Current delivery, Country risk, Convertible term insurance, Cost-of-living rider, Callable stock, Certificate of stock, Chicago Board Options Exchange, Closed corporation, Consumer stock, Control stock, Corporate action, Cost of carry, Certificate of title, Class action suit, Clear title, Contract, Contract for deed, Contract sale, Cancellation of debt, Certificate of Claim, Closed-end credit, Cost of debt capital, Cost of funds, Credit limit, Closed-end fund, Closed-end investment company, Closed fund, C shares, Call option, Call ratio backspread, Call swaption, Class of options, Close to the money, Closing transaction, Contract size, Counterparty risk, Covered call, Covered option, Certificate of Occupancy, Closing date, Cloud on title, Cash or Deferred Arrangement, Capital Asset Pricing Model, Capitalization weighted index, Class A Shares, Class B Shares, Crash of 1929, Crash of 1987, Constant dollar plan, Child and dependent care credit, Coefficient of determination, Cup and handle, Cash delivery, Certificate of delivery, Close, Close a position, Close market, Close out, Closing price, Cornering the market, Curbs in, Date draft, Deposit in transit, Date of issue, Date of payment, Debt limit, Deep-discount bond, Deferred interest bond, Delivery vs. payment, Delivery vs. receipt, Delivery vs. repayment, Discount bond, Discounted bond, Distribution date, Dollar bond, Dollar price, Dual currency bond, Due date, Day order, Del credere agency, Designated Order Turnaround, Discretionary order, Division of Enforcement, Division of Investment Management, Division of Market Regulation, Do Not Reduce, Dollar terms, Date of record, Dividend in arrears, Dividend requirement, Desk (the), Division of labor, Dollar shortage, Durable goods orders, Daily trading limit, Delivery month, Delivery point, Delivery price, Decreasing term life, Deal stock, Defensive stock, Distribution stock, Donated stock, Dated date, De-escalation clause, De facto, Delivery, Doing business as, Durable Power of Attorney, Date of maturity, Debtor in possession, Debtor-in-possession financing, Deed of Release, Deed of Trust, Default risk, Deferred payment, Discharge of bankruptcy, Discharge of lien, Down payment, Due-on-sale clause, Dollar cost averaging, Dual-purpose fund, Deep in the money, Deep out of the money, Deed of Surrender, Department of Housing and Urban Development, Deferred payment annuity, Direct transfer, Dirty stock, Diversifiable risk, Dogs of the Dow, Daily high, Daily low, Daylight trade, Day trade, Depth of market, Dollar volume, Downside risk, Earning asset, EBITDA margin, Electronic Funds Transfer, Eurodollar certificate of deposit, Embedded option, Equity risk premium, Escrowed to maturity, Eurodollar bond, Euroyen bond, Event risk, Exchange, Ex-legal, Either-or order, Exchange seat, European Currency Unit, European terms, Exchange rate, Effective par, ECI, Edge Act, Employer Cost Index, Employment Cost Index, E-mini, Exchange against actuals, Exchange for futures, Exchange for physical, Exchange of spot, Exchange versus cash, Ex-pit transaction, EAFE Index, Effective date, Excluded risk, Employee Stock Purchase Plan, Employee stock repurchase agreement, Equity option, Ex-all, Exchange ratio, Enhanced index fund, Exchange fund, Exchange privilege, European-style option, Exchange-traded option, Exercise limit, Expiration date, Ex-warrants, Employee Retirement Income Security Act of 1974, Ex-rights, Ex-rights date, Exchange distribution, Financial asset, First In First Out, Fixed asset, Form 10-Q, Federal Savings and Loan Association, Fidelity bond, First call date, Flight to quality, Floating-rate bond, Flow of funds, Forward, Free bond, Full price, Federal Call, Fill or kill, Front-ending an order, Floating exchange rate, Foreign currency option, Foreign exchange, Foreign exchange rate, Forward deal, Forward exchange rate, Forward P/E, Factors of production, Favorable balance of trade, Federal Reserve requirement, Federal Trade Commission, Free market price, Free trade, Financial futures, Fluctuation limit, Forward cover, Forward price, Futures, Futures contract, Futures option, Futures price, Fee-for-service, First preferred stock, Form 8-K, Form S-1, Forward pricing, Full stock, Final prospectus, Friends and family offering, Fair Credit Reporting Act, Fair Debt Collection Practices Act, Financial risk, Forward differential, Forward interest rate, Forward Rate Agreement, Forward sale, Full faith and credit, Family of funds, Fund of funds, Far option, Free and clear, Federal Insurance Contributions Act, Free right of exchange, FIN, Forward commitment, Forward trade, Free delivery, Gross margin, Gross profit margin, General Obligation Bond, Global bond, Gold bond, Good delivery, Government Bond, Government Securities Clearing Corporation, Guaranteed bond, Guaranteed Investment Contract, Glass-Steagall Act, Good Til Canceled, Gold standard, Growth stock, G-7, GDP implicit price deflator, General Agreement on Tariffs and Trade, G-8, Guaranteed insurability, Guaranteed renewable, Good faith, Guarantee, Graduated payment, Growth and income fund, Grant date, Good title, Gather in the stops, Generation-skipping transfer, Hidden asset, High-grade bond, Housing bond, Hard dollars, Hart-Scott-Rodino Act of 1976, Hit the bid, House, House account, House call, House of issue, Hard currency, Hedge ratio, Hang Seng Index, Health Insurance Portability and Accountability Act, Hedge, High-tech stock, Hedge clause, Holder in due course, Hang out loan, Home equity line of credit, Home Mortgage Disclosure Act, Hedge fund, Hedge wrapper, Housing Market Index, Head and shoulders, High-low index, Hammering the market, Held at the opening, Historical trading range, Holding the market, Horizontal price movement, Inactive asset, Intangible asset, Income bond, Index bond, Index-linked bond, Industrial revenue bond, In escrow, Installment bond, Insured bond, Interchangeable bond, Interest rate risk, Intermediate-term, Investment-grade bond, Irredeemable bond, Issue date, In-house, Investment Advisor Act of 1940, Investment Company Act of 1940, Income stock, In line, Index, Interest rate futures, Intermediate goods, International trade, Insider trading, Insider Trading sanctions Act of 1984, Internal Rate of Return, Indication of interest, In intestacy, In play, In-process research and development, Income risk, Index fund, Index option, Interest rate option, I/O strip, Installment sales contract, Immediate payment annuity, In-service withdrawal, Idiosyncratic risk, Index arbitrage, Imbalance of orders, In and out, In sympathy, Intermarket Trading System, In the tank, Junk bond, Jointly and severally, Jumping the gun, Joint will, Joint and several liability, Joint and survivor annuity, Joint Stock Company, Jensen index, Knock-out option, Last In First Out, Lender of last resort, Law of one price, Limited risk, Long Bond, Long-term, Lending at a rate, Limit-on-close order, Limit order, Limit order book, Limit order information system, Limit price, Law of demand, Law of supply, Last trading day, Limit down, Limit move, Limit up, Lock-limit, London International Financial Futures and Options Exchange, Long hedge, Limited company, Level term insurance, Long-term care insurance, Lump sum distribution, Loan stock, Long-term debt, Long-Term Equity Anticipation Securities, Letter of comment, Legal age, Legal risk, Living will, Legal assets, Line of credit, Loan-to-cost, Loan-to-value, Lock-in, Long-term mortgage, Lump sum, Lapsed option, Listed option, Land contract, Long-term lease, Leading the market, Like-kind exchange, Limited Liability Company, Locked in, Long-term gain or loss, Level I quotes, Money order, Maintenance bond, Market conversion price, Matrix trading, Maturity date, Medium-term, Medium-term bond, Moral obligation bond, Mortgage bond, Municipal bond, Municipal bond fund, Municipal bond insurance, Municipal Bond Insurance Association, Municipal revenue bond, Maintenance call, Make a market, Margin, Margin account, Margin agreement, Margin buying, Margin call, Margin loan, Margin rate, Market if touched order, Market on close order, Market order, Mark-to-market, Medium of exchange, Marginal propensity to consume, Misery index, Marginable stock, Making delivery, Make whole provision, Minimum payment, Money at call, Mortgage risk, Macro-hedge, Micro-hedge, Mean, Mean return, Market-share weighted index, Market-value weighted index, Market Volatility Index, Maximum price fluctuation, Master limited partnership, Net current assets, Net interest margin, Net margin, Net operating margin, Net profit margin, Net quick assets, Net tangible assets, Noncurrent asset, Non-financial asset, Negotiable certificate of deposit, Negotiable Order of Withdrawal, New York Stock Exchange, Nine-Bond Rule, Non-callable bond, Notice of Sale, National Association of Securities Dealers, National Association of Securities Dealers Automated Quotations system, National Securities Clearing Corporation, National Securities Trade Association, No limit order, Nominal asset, NAPM index, National Futures Association, New York Futures Exchange, Non-equity option, Nikkei Index, Net Asset Value, Nonvoting stock, No-Action Letter, Null and void, Nonperforming asset, Notice of Default, Naked call, Naked option, Near option, Non-qualified stock option, Non-statutory stock option, National Association of Real Estate Investment Trusts, Normal retirement age, No-load stock, Neutral hedge, Nasdaq Composite Index, Negative Volume Index, Net change, Net transaction, NYSE Composite Index, Off-balance-sheet financing, Off the books, Operating margin, Other current assets, Other long term liabilities, Office of Thrift Supervision, Obligation, Obligation bond, Offering price, Out-of-favor, Over-the-Counter, Off-floor order, On-floor order, On margin, Open order, Option account, Or better, Order, Order flow, Order ticket, Operating profit margin, Other income, Option, Optionable stock, Original issue stock, Offering date, Opinion of title, On account, On-the-spot loan, Option income fund, OCC, Opening transaction, Option chain, Option contract, Option holder, Option margin, Option pool, Option premium, Option price, Option pricing curve, Options Clearing Corporation, Option series, Option spread, Options Prices Reporting Authority, Option writer, Out of the money, Old age, survivors, and disability insurance, On-balance volume, Odd lot buy/sell ratio, Off-board, Offset, On close, On open, On the opening, Open trade equity, Option exchange, Order book official, Order imbalance, Pooling of interests, Pre-depreciation profit, Pre-tax profit margin, Profit and loss statement, Profit margin, Pro forma, Par bond, Payment date, Payment-in-kind security, Performance bond, Pickup bond, Premium bond, Premium over bond value, Premium over conversion value, Price Value of a Basis Point, Prior lien bond, Privileged bond, Provisional call feature, Public bond, Public purpose bond, Put bond, Payment for order flow, Public limited partnership, Purpose loan, Payable date, Preferred stock, Prior preferred stock, P&L, Provision for income taxes, Price index, Producer Price Index, Public goods, Parity price, Physical commodity, Price limit, Periodic payment plan, Policy limit, PPO, Pre-existing conditions, Public offering price, Party, Pour-over will, Power of Attorney, Personal guarantee, Prepayment risk, Principal risk, Prioritization of debt, Projected maturity date, Publicly-traded fund, Pure index fund, Pairs trade, Payoff diagram, Physical option, Position limit, Price spread, Put option, Plan asset, Prudent Expert Act, Paid-in capital, Paid-in surplus, Percent held by institutions, Pre-syndicate bid, Private Investment in Public Equity, Publicly traded, Perfect hedge, Preservation of capital, Program trading, Pattern, Point-and-figure chart, Painting the tape, Paper trading, Positive Volume Index, Price range, Price-weighted index, Primary exchange, Profit-taking, Put/call ratio, Private limited partnership, Quick assets, Real asset, Reports and Records, Return of capital, Return on Capital, Return on Invested Capital, Return on Total Assets, Risk adjusted return, Regulation Q, Reserve requirement, Rubber check, Redeemable bond, Redemption date, Redemption price, Registered coupon bond, Regular-way delivery, Revenue bond, Risk, Reading the tape, Real-time trade reporting, Receive against payment, Receive versus payment, Regulation D, Regulation G, Regulation T, Regulation U, Round of funding, Rules of Fair Practice, Rate of exchange, Reciprocal of European terms, Record date, Regulated investment company, Retail Price Index, Retail sales index, Reinvestment risk, Restricted stock, Regulation A, Reverse Take-Over, Right of first refusal, Right of rescission, Right to Know, Regulation Z, Revolving line of credit, Right of recourse, Roll over, Rule of 78, Registered options principal, Roll forward, Right of redemption, Retirement Equity Act of 1984, Risk/return trade-off, Risk arbitrage, Risk-averse, Risk management, Risk neutral, Risk premium, Risk seeking, Relative Strength Index, Return on Capital Employed, Rate of return, Real rate of return, Regional exchange, Ring, Resyndication limited partnership, Risk capital, Selling, General and Administrative Expenses, SG&A, Stranded asset, Savings and Loan, Short-term reserves, Sight letter of credit, Signature guarantee, S&L, Stock association, Stop payment, Savings Bond, Secured bond, Securities and Exchange Commission, Self-supporting bond, Sell, Serial bond, Series bond, Series EE bond, Series HH bond, Short bond, Short-term, Split coupon bond, Step-up bond, Stock buyback, Straight bond, Super sinker bond, Surety bond, Segregation of securities, Sell limit order, Sell order, Sell plus, Sell-side analyst, Sell the book, Significant order, Small Order Execution System, Soft dollars, Split order, Stock loan, Stop-limit order, Stop order, Stop price, Strong dollar, Second preferred stock, Stock dividend, Standard of living, Systemic risk, Selling hedge, Settlement price, Short hedge, Single stock futures, Soft commodity, Spot commodity, Spot price, Spot trading, Second-to-die insurance, Settlement options, Stock life insurance company, Secondary stock, Standard Industrial Classification, Stock bonus plan, Stock certificate, Stock Clearing Corporation, Stock consolidation, Stock exchange, Stock index, Stock market, Stock option, Stock option plan, Stock power, Stock screening, Stock swap, Stock symbol, Stock ticker, Subscription price, Settle, Statute of Limitations, Sale and leaseback, Satisfaction of debt, Seller financing, Single-payment loan, Standard payment calculation, Staggered board of directors, Standard deviation, Stock fund, Selling the spread, Single option, Spread option, Strike index, Synthetic stock, Special use property, Savings Incentive Match Plan for Employees, Share price, Split-adjusted price, Stock list, Story stock, Selling short against the box, Shorting against the box, Swing trade, S Corporation, Short-term gain or loss, Standard deduction, Standard mileage rate, Subchapter M, Subchapter S Corporation, Scale order, Schedule C, Securities Act of 1933, Securities Acts Amendments of 1975, Securities Exchange Act of 1934, Seek a market, Settlement date, S&P phenomenon, Stop and reverse, Suspended trading, Tangible asset, Total assets, Transaction, Term CD, Transfer, Tax-exempt bond, T-Bill, Term, Term bond, Term to maturity, Trade, Trading, Treasury Bond, Take a position, Time order, Trading authorization, Trailing P/E, Trade barrier, Trade deficit, Trade surplus, Take delivery, Trade house, Trading range, Term insurance, Total asset turnover, Total return index, Transfer agent, Treasury Stock, Tenancy by the entirety, Terms, Third party, TED spread, Term deposit, Term loan, Treasury index, Truth in Lending, Tax-free bond fund, Term trust, Tenancy at will, Transfer tax, Top hat plan, Transfer payments, Ten-bagger, The Street, Timing the market, Taxpayer Relief Act of 1997, Tax Reform Act of 1986, Tax Reform Act of 1993, Trading profit, Trading Index, Take a bath, Target price, Term repo, Thinly traded, Trade date, Trading costs, Trading curb, Trading floor, Trading halt, Trading session, Trading volume, Term sheet, U.S. Government Agency Security, U.S. Savings Bond, U.S. Treasury, U.S. Treasury Bill, U.S. Treasury Bond, U.S. Treasury Note, U.S. Treasury Securities, Unlimited risk, Unlimited tax bond, Uniform Securities Act, Unlisted trading, Uncovered call, Uncovered option, Unsystematic risk, Unit of trade, Unit of trading, Variation margin, Value stock, Vetoing stock, Voting stock, Venture capital limited partnership, Wire transfer, Williams Act, Weak dollar, Wage price spiral, World Trade Organization, Waiver of premium, War chest, Watered stock, Widow-and-orphan stock, W-2 Form, W formation, When, as, and if issued, Wilshire 5000 Equity Index, X or XD, Year-over-year, Year-To-Date, Yankee bond market, Yield to call, Yield to maturity, Yield to worst, Y shares, Zero-base budgeting, Zero-coupon bond, Z shares, Zero-beta portfolio, Zero-investment portfolio, Zero downtick, Zero-minus tick, Zero-plus tick, Zero uptick