Futures contract

{
  "id": "MLC-T-INS-001620",
  "term": "Futures contract",
  "field": "Insurance and risk management",
  "definition": "A standardized, legally binding agreement to buy or sell a specific commodity, financial instrument, or other asset at a predetermined price on a future date. These contracts are traded on regulated exchanges, which guarantees performance and reduces counterparty risk. Unlike customized forward contracts, futures contracts have standardized terms for quantity, quality, and delivery, making them highly liquid instruments for hedging against price fluctuations or for speculation.",
  "url": "https://mlchart.com/terminology/insurance/futures-contract/"
}