Post
Topic
Board Trading Discussion
Re: Trading Futures, how can it work?
by
ELI85
on 27/08/2017, 13:51:51 UTC
The underlying asset need not be available, if the contract is settled in cash.
Quote
Futures are financial contracts obligating the buyer to purchase an asset or the seller to sell an asset, such as a physical commodity or a financial instrument, at a predetermined future date and price. Futures contracts detail the quality and quantity of the underlying asset; they are standardized to facilitate trading on a futures exchange. Some futures contracts may call for physical delivery of the asset, while others are settled in cash.

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