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What is the definition of futures？

幫考網校2020-10-13 17:25:48
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Futures are financial contracts that obligate the buyer to purchase an asset or the seller to sell an asset, such as a physical commodity or a financial instrument, at a predetermined future date and price. These contracts are traded on exchanges and are standardized in terms of contract size, expiration date, and delivery location. Futures allow investors to hedge against price fluctuations or speculate on the future price movements of the underlying asset.
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