By | 2019-08-29T12:02:28+00:00 13th September 2017|

A future is an agreement to buy or sell an asset such as a bond or equity, on a specific date in the future at a price that is agreed today. Futures can be used either to hedge or to speculate on the price movement of the underlying asset. To buy a future a fee (a premium) is usually paid as opposed to forward agreements where fees are not generally paid.