A futures contract is an agreement to buy or sell an asset at a future date at a price agreed upon today.

Futures contracts are used in trading to hedge against risk or speculate on the price of an asset.. Futures Contract Definition: Types, Mechanics, and Uses.

When can you trade futures?

You can trade futures on most major exchanges during regular trading hours. Some exchanges also offer extended trading hours for futures contracts, which may be useful for traders who need to respond to news or events that occur outside of regular trading hours.

The specific hours during which futures contracts can be traded vary depending on the exchange and the type of contract, but most exchanges have trading hours that are similar to the hours of the underlying asset. For example, if you are trading a futures contract on crude oil, the trading hours will be similar to the trading hours for crude oil spot prices. What is hedging and its types? Hedging is a risk management technique that is used to offset or minimize the potential losses that may be incurred by an individual or an organization. There are various types of hedging strategies that can be employed, and the most common ones are discussed below.

1. Long/short hedging: This is a hedging strategy that involves taking both long and short positions in different securities in order to offset the risks associated with price movements in either direction.

2. Directional hedging: This is a hedging strategy that involves taking positions in securities that are expected to move in opposite directions in order to offset the risks associated with price movements in one direction.

3. Futures hedging: This is a hedging strategy that involves taking positions in futures contracts in order to offset the risks associated with price movements in the underlying asset.

4. Options hedging: This is a hedging strategy that involves taking positions in options contracts in order to offset the risks associated with price movements in the underlying asset.

5. Currency hedging: This is a hedging strategy that involves taking positions in foreign currencies in order to offset the risks associated with exchange rate movements.

6. Interest rate hedging: This is a hedging strategy that involves taking positions in interest rate securities in order to offset the risks associated with interest rate movements.

What is hedging in future? Hedging is an investment strategy designed to protect against losses in the event of a downturn in the market. It involves taking a position in a security or commodity that is opposite to the one you are currently holding. For example, if you are holding a long position in a stock, you would hedge by taking a short position in a futures contract for the same stock.

The goal of hedging is to limit your losses in the event of a market downturn, while still allowing you to participate in any upside potential. It is important to note that hedging is not a guaranteed way to protect your portfolio, but it can help to reduce your risk. What are the features of future contract? A future contract is an agreement to buy or sell a particular asset at a specified price at a later date.

The main features of a future contract are:

-The underlying asset can be a commodity, currency, equity index, or interest rate.
-The contract is standardized so that it can be traded on a futures exchange.
-The contract has a specific expiration date.
-The contract can be bought or sold prior to expiration.
-The contract can be settled in cash or delivered.

What is future market example?

The future market is an important part of the overall financial markets. It is a market where contracts are traded for the purchase or sale of a commodity, security or other asset at a future date. The contracts are standardized in terms of quantity, quality, delivery date and price.

The future market can be used for hedging purposes, to speculate on the future price movements of an asset, or to lock in a price for the purchase or sale of an asset at a future date.

The most common types of contracts traded in the future market are futures contracts and options contracts.