ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A futures contract is a legal agreement to buy or sell a particular commodity asset, or security at a predetermined price at a specified time in the future. Futures contracts are standardized for quality and quantity to facilitate trading on a futures exchange.

Detailed explanation-2: -A forward contract is a customized contract between two parties to buy or sell an asset at a specified price on a future date.

Detailed explanation-3: -A futures contract is a legal agreement based on future exchanges, that is, buying and selling of a financial instrument in both equity and commodity at a fixed price in the future at a specified time.

Detailed explanation-4: -Futures contract is where the buyer and seller of the contract agree to transact in the underlying asset on a future date at a price determined in advance.

Detailed explanation-5: -Futures are derivative financial contracts that obligate parties to buy or sell an asset at a predetermined future date and price. The buyer must purchase or the seller must sell the underlying asset at the set price, regardless of the current market price at the expiration date.