An EXCHANGETRADED DERIVATIVE contract that permits the purchaser to buy, and the seller to sell, an ASSET at a predetermined future price and delivery date . Standardized futures contracts are available on assets/securities from the FIXED INCOME , EQUITY, FOREIGN EXCHANGE, and commodity markets, and can be settled in cash or physical (depending on contract specifications). Contracts are secured by INITIAL MARGIN and are MARKEDTOMARKET on a daily basis by the CLEARINGHOUSE ; VARIATION MARGINS are posted to cover daily market movement. See also FUTURES OPTION , FUTURES CALL , FUTURES PUT .
Black’s Law Online Dictionary
