What is a futures contract?

Futures can be used for hedging or trade speculation. Futures are derivative financial contracts obligating the buyer to purchase an asset or the seller to sell an asset at a predetermined future date and set price. A futures contract allows an investor to speculate on the price of a financial instrument or commodity.

What is a stock future?

A Beginner’s Guide to Stock Futures Stock futures are an agreement to buy or sell a specific quantity of a security at a predetermined price on a future date. The contract is based on the value of a particular stock or stock index.

What are the features of a futures quote?

Some of the features of a futures quotes includes the open price, high and low, the closing price, trading volume, and ticker. Contract codes identify the product, month, and year of the contract. What Is a Future? A future, also called a future contract, is a financial contract between two parties—a buyer and seller.

How are stock futures prices determined?

Stock futures prices are determined by supply and demand in the marketplace. When more people want to buy a particular futures contract than sell it, the price goes up. When more people want to sell a particular contract than buy it, the price goes down.