Futures: Derivative product explained

Hello readers, welcome back to the Green Bull V/S Red Bear. Today's blog is all about another derivative product called futures. Futures trading represents a dynamic aspect of the financial landscape, offering investors a gateway to manage risk, speculate on price movements, and participate in diverse markets. In this blog series, we delve into the fundamentals of futures trading, unraveling its intricacies, and shedding light on its importance in the global financial ecosystem. So let's dive into the concept of the future! Futures: Derivative product Futures are standard financial contracts traded on organized exchanges that bound the buyer or seller to purchase or sell a specified quantity of an underlying asset (such as stocks, indices, commodities, or currencies) at an agreed-upon price (strike price) on a future date (expiry date). Futures agreements are a type of derivative instrument, so their value is determined by the underlying asset's performance. Characteris...