[{"data":1,"prerenderedAt":58},["ShallowReactive",2],{"term:futures":3},{"term":4,"related":45},{"id":5,"title":6,"body":7,"category":27,"description":28,"extension":29,"faq":30,"meta":31,"navigation":32,"path":33,"related":34,"seo":38,"stem":39,"takeaways":40,"__hash__":44},"terms\u002Fterms\u002Ffutures.md","Futures Contract",{"type":8,"value":9,"toc":22},"minimark",[10,15,19],[11,12,14],"h2",{"id":13},"understanding-futures-contract","Understanding Futures Contract",[16,17,18],"p",{},"Futures trade on exchanges and cover commodities, currencies, interest rates, and stock indexes. Unlike options, both sides are obligated to complete the trade, though most positions are closed before delivery.",[16,20,21],{},"Producers and buyers use futures to lock in prices; speculators use them for leveraged bets. Gains and losses are settled daily, so losses can require additional margin quickly.",{"title":23,"searchDepth":24,"depth":24,"links":25},"",2,[26],{"id":13,"depth":24,"text":14},"trading","A standardized agreement to buy or sell an asset at a set price on a future date.","md",[],{},true,"\u002Fterms\u002Ffutures",[35,36,37],"options","leverage","margin",{"title":6,"description":28},"terms\u002Ffutures",[41,42,43],"Futures obligate both parties to trade at a set price and date.","They are used for hedging and speculation.","Daily settlement can require extra cash quickly.","2AtuE7-QiEpz8p9it3BBj_36qSKLaBxWRWUAwPR5Xso",[46,50,54],{"title":47,"description":48,"path":49},"Leverage","Using borrowed money or derivatives to increase the size of an investment.","\u002Fterms\u002Fleverage",{"title":51,"description":52,"path":53},"Buying on Margin","Borrowing money from a broker to buy securities, using your investments as collateral.","\u002Fterms\u002Fmargin",{"title":55,"description":56,"path":57},"Options","Contracts that give the right, but not the obligation, to buy or sell an asset at a set price before a set date.","\u002Fterms\u002Foptions",1793374005158]