Futures contract
Futures contract is a standardized contract that is traded on exchanges and are "marked to market" daily, but where physical delivery of the underlying asset is never taken.
Definitions
According to Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition),
- Futures contract. Standardized contracts that are traded on exchanges and are "marked to market" daily, but where physical delivery of the underlying asset is never taken.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
