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General TradingF
Futures
Futures are standardized contracts traded on exchanges that obligate the buyer to purchase, and the seller to sell, a specific asset at a predetermined price on a future date. They are used for hedging and speculation across commodities, currencies, indices, and interest rates.
Example
“The corn farmer sold December futures contracts at $5.50 per bushel to lock in a selling price for the upcoming harvest, hedging against the risk of falling prices before delivery.”