Buy Futures Contract Example -

A futures contract is a legally binding agreement to buy or sell a specific asset—such as a commodity, currency, or financial index—at a predetermined price on a set future date. When you "buy" a futures contract, you enter a , committing to purchase the underlying asset at the expiration date, regardless of the then-current market price. The Mechanics of Buying Futures

A speculator with no interest in owning actual oil believes prices will rise due to geopolitical tension. What Are Futures? How Futures Contracts Work buy futures contract example

The manufacturer buys one corn futures contract (covering 5,000 bushels) at the current futures price of $5.00 per bushel . A futures contract is a legally binding agreement