What are future contracts?
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Future contracts are those contracts which are entered today for buying & selling of securities at some
future date. A futures contract is a contract between two parties where both parties agree to buy and sell a
particular asset of specific quantity and at a predetermined price, at a specified date in future.
The payment and delivery of the asset is made on the future date termed as delivery date. The buyer in the
futures contract is known as to hold a long position or simply long. The seller in the futures contracts is said
to be having short position or simply short.