Futures
Futures are derivative contracts that create an agreement between two parties to buy or sell an underlying asset at a pre-agreed price and date. These contracts obligate the buyer to purchase, and the seller to sell, the underlying securities, which can include stocks, bonds, interest rates, currencies, and commodities. Futures are commonly used for hedging risks or for speculative purposes, as they allow investors to profit from price movements in the underlying asset without actually owning it.
Related Terms
Margin Funding
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Lead Underwriter
The lead underwriter is the financial institution responsible for overseeing and managing an Initial Public...
Equity Shares
Equity shares refer to the ownership units of a company, issued through an Initial Public...
Accrued Interest
Accrued interest is the interest that accumulates during the current accounting period but remains unpaid...
Dividend Reinvestment Plan (DRIP)
A Dividend Reinvestment Plan (DRIP) allows investors to reinvest the dividends they earn from stocks...
Backtesting
Backtesting involves testing trading strategies or models against historical data to evaluate their effectiveness. It’s...
