Futures

Exchange traded contracts used for either hedging or speculating in relation to outturn market rates on a prespecified date in the future.

Because futures contracts are exchange traded they involve standard amounts and standard expiry dates.

They also require a refundable up-front security payment (initial margin) and subsequent variation margin adjustments.

See also

• Basis
• Bond futures
• Close out
• Currency futures
• Futures contract
• Hedging
• Initial margin
• Interest rate futures
• International Organization of Securities Commissions
• Margin
• Speculation
• STIR
• Swapnote
• Tick
• Variation margin