trding.io
Instruments

Futures — definition & meaning

A standardised contract to buy or sell an asset at a set future date and price.

A futures contract is an agreement to buy or sell an asset at an agreed price on a set future date, traded on regulated exchanges.

Futures are used both to hedge (locking in a price) and to speculate. They are leveraged and standardised by contract size, and they expire, so positions must be closed or rolled before the expiry date.

The information on Trding.io is for general information only and is not investment advice. Trading involves a real risk of losing money, and most retail traders lose. Never trade money you cannot afford to lose.

Related terms

Keep going