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Futures Contract
Futures Contract
Image 1 An exchange traded agreement to buy or sell a particular type and grade of commodity for delivery at an agreed upon place and time in the future. Futures contracts are transferable between parties.
Image 2 Commodity futures very rarely lead to deliver of a commodity because positions are closed out before the delivery date. Whereas forward contracts often lead to delivery.


Derivative

Forward Contract

Future Rate Agreement (FRA)

Futures

Index Futures

Settlement Price