Futures contract: Difference between revisions

Futures contract (view source)

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 In [[finance]], a '''futures contract''' is a standardized [[contract]] between two parties to buy or sell a specified asset of standardized quantity and quality for a price agreed today (the "'''futures price'''" or "'''[[strike price]]'''") with delivery and payment occurring at a specified future date (the "'''delivery date'''").
-The contracts are negotiated at a [[futures exchange]], which acts as an intermediary between the two parties. The party agreeing to buy the underlying asset in the future, the "buyer" of the contract, is said to be "[[Long (finance)|long]]", and the party agreeing to sell the asset in the future, the "seller" of the contract, is said to be "[[Short (finance)|short]]”.
+The contracts are negotiated at a [[futures exchange]], which acts as an intermediary between the two parties. The party agreeing to buy the underlying asset in the future, the "buyer" of the contract, is said to be "[[Long (finance)|long]]”, and the party agreeing to sell the asset in the future, the "seller" of the contract, is said to be "[[Short (finance)|short]]”.
 The terminology reflects the expectations of the parties—the buyer hopes or expects that the asset price is going to increase, while the seller hopes or expects that it will decrease in near future. Futures contracts are often called simply "futures”.