How Do You Spell FUTURES CONTRACT?

Pronunciation: [fjˈuːt͡ʃəz kˈɒntɹakt] (IPA)

The spelling of the word "futures contract" is fairly straightforward, although the emphasis on different syllables may vary depending on the speaker's accent. In IPA phonetic transcription, it is spelled /ˈfjuː.tʃərz ˌkɒn.trækt/. The first syllable is pronounced like "few," the second syllable rhymes with "her," and the final syllable sounds like "tract." The "u" in "futures" is pronounced like the "oo" in "boot," while the "o" in "contract" is pronounced like the "ah" in "father."

FUTURES CONTRACT Meaning and Definition

1. A futures contract refers to a legally binding agreement between two parties, typically in the context of commodity or financial markets, to buy or sell a specific asset at a predetermined price on a designated future date. These assets can include commodities like oil, gold, or agricultural products, as well as financial instruments such as currencies, stocks, or bonds. The buyer commits to purchasing the asset, while the seller agrees to deliver it, both at the predetermined price and date known as the expiration date.

   Futures contracts facilitate the trading of these assets, allowing market participants to speculate on their future prices or hedge against potential risks. They are standardized agreements traded on organized exchanges, ensuring transparency and liquidity in the market. Specifics of the contract, including the asset type, quantity, quality, and delivery location, are pre-determined and clearly defined.

   Since futures contracts are a form of derivatives, their value depends on the price fluctuations of the underlying asset. This means that the contract's value can change, positively or negatively, based on the market conditions. To manage this risk, many traders close their positions before the expiration date through offsetting transactions. These offsetting trades allow participants to profit from the price differences without physically receiving or delivering the asset.

   Overall, futures contracts play a crucial role in price discovery, risk management, and market efficiency across various industries, providing participants with opportunities for speculation or establishing future obligations.

Common Misspellings for FUTURES CONTRACT

• dutures contract
• cutures contract
• vutures contract
• gutures contract
• tutures contract
• rutures contract
• fytures contract
• fhtures contract
• fjtures contract
• fitures contract
• f8tures contract
• f7tures contract
• furures contract
• fufures contract
• fugures contract
• fuyures contract
• fu6ures contract
• fu5ures contract
• futyres contract

Etymology of FUTURES CONTRACT

The word "futures contract" is derived from the combination of the words "future" and "contract".

The term "future" originated from Middle English (14th century) and is derived from the Old French word "futur", which means "that is to be" or "that will exist or happen". It comes from the Latin word "futurus" which has a similar meaning.

The term "contract" originated from the Latin word "contractus", which means "drawn together". It refers to a legal agreement between two or more parties that binds them to perform certain obligations. The usage of the term "contract" in this context is to signify the binding agreement entered into by the parties involved in the futures market.

Similar spelling words for FUTURES CONTRACT

• futures exchange,
• futures market.

Plural form of FUTURES CONTRACT is FUTURES CONTRACTS