Futures Contract definition

An obligation to exchange a good or instrument at a set price on a future date; the primary difference between a Future and a Forward is that Futures are typically traded over an exchange (Exchange- Traded Contacts - ETC), versus forwards, which are considered Over the Counter (OTC) contracts. An OTC is any contract NOT traded on an exchange.

Related words

Futures ContractFixed exchange rateFRAForward PointsForwardForeign Exchange MarketForeign Exchange RiskForex Charting SoftwareForeign funds