Futures Contract

An agreementAn exchange of promises, a mutual understanding or arrangement; a contract. to purchase or sell a commodityA commodity, as defined in the Commodity Exchange Act, includes the agricultural commodities enumerated for deliveryThe tender and receipt of the actual commodity, the cash value of the commodity, or of a delivery instrument in the future: (1) at a priceThe dollar amount that was offered, asked, or actually paid for a property. that is determined at initiation of the contractThe formal legal document, also known as the "policy" that describes the agreement between the policyholder; (2) that obligates each party to the contract to fulfill the contract at the specified price; (3) that is used to assumeAn agreement to continue performing duties under a contract or lease. or shift price riskThis word has two meanings for insurers: (1) the chance of loss such as from a peril; and (2) the person; and (4) that may be satisfied by delivery or offsetLiquidating a purchase of futures contracts through the sale of an equal number of contracts of the.