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futures contract
/fjˈuːtʃɚz kˈɑːntɹækt/
/fjˈuːtʃəz kˈɒntɹakt/
Futures contract
01
an agreement to buy or sell goods or assets at a predetermined price but delivered and paid for at a later time
Example
Farmers often use a futures contract to lock in a price for their crops ahead of the harvest, protecting themselves against price fluctuations in the market.
An airline company might enter into a futures contract to purchase jet fuel at a fixed price, helping to manage costs and budget more accurately.
