User FAQs

1) What is a Future ?
An agreement to buy (or sell) an asset at a fixed price on a particular date in the future.
These are standardised contracts traded on an exchange.

2) Why would someone buy a Future ?
If you have a commitment to buy something in the future you can buy a future contract to lock in the price that you will have to pay.

3) What information do you need to price a Future ?
Delivery Price - The price agreed to pay for the asset
Maturity Date - The date of delivery

4) How do you price a Future ?

5) What happens when a future contract expires ?
If a position is not closed out before expiry the contract will be settled by physical delivery or cash settlement.