An exchange-traded contract promising to buy or sell standard commodities or securities at a future date at a set price. Futures are “paper” deals and involve profit and loss on promises to deliver, not possession of the actual commodity. The main difference between a futures contract and a forward contract is that a futures contract is cash ‘Settled, or marked-to-market, daily. Additionally, the futures market requires that all market participants sellers and buyers alike – post a performance bond call margin.
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