Futures - what is it? The meaning of a word, definition, origin, translation


Futures (an emphasis on "yu") is a financial instrument that implies a future transaction at a fixed price, known at the moment and prescribed in the contract for the purchase of futures. The word "future" in translation from English into Russian means "the future", and the very idea of ​​futures is based on predicting the movement of asset prices in a certain period of time in the future. The futures scheme allows traders to earn in a falling market, and buyers of goods to guarantee a profitable purchase price.

An example of a futures contract: the company wants to buy oil in a year and insure itself against a possible price increase. For this purpose, she buys an oil futures with the right to buy a certain amount of "black gold" at a fixed price with delivery in a year. Another example: a trader believes that one of the shares in a year should fall heavily. To do this, he enters a futures deal on the price of the stock, and if its price really falls below a certain level, receives a reward.

Futures is in the list: Finance

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