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In finance, a contract refers to a legally binding agreement between two or more parties that defines the terms and conditions of an exchange or transaction. Contracts can be used for a wide range of purposes, such as buying and selling goods or services, borrowing and lending money, or entering into financial transactions like futures or options contracts. In financial markets, contracts often take the form of standardized agreements that can be traded between parties, such as futures contracts, options contracts, and forward contracts.

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