Resource Dictionary

Futures

A financial obligation for the buyer to purchase the underlying asset at a point in time in the future called the expiry date, and for the seller to deliver the underlying asset at its expiry date. At the expiry date, the goods can be delivered or settled in cash (in a process called “netting”). This differs from options because the buyer of an option has the “option” to buy, whereas the buyer of a future has the “obligation” to buy.