A futures contract is a standardized financial agreement to buy or sell an underlying asset at a predetermined price and date in the future. The contract specifies the quantity and quality of the asset being traded, and the terms and conditions of delivery. Futures contracts are used by traders and investors to hedge risks or speculate on the price movements of the underlying asset. They are traded on exchanges, and the price of a futures contract reflects the market’s expectations about the future price of the underlying asset. Futures contracts can be settled in cash or by physical delivery of the underlying asset.