Futures Exchange-Traded Contracts

Definition

They are firm agreements to deliver (or take delivery of) a standardized amount of something on a certain date at a predetermined price. Futures exist in currencies, money market deposits, bonds, shares and commodities. They are traded on an exchange with the clearing corporation guaranteeing the contract and moreover the trade is done on a mark to market basis.

Forex Word of the day

ISDA (International Securities Dealers Association
Organization which foreign currency exchange banks have formed to regulate inter-bank markets and exchanges.
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