Definitions for "Futures Contracts"
Agreements providing for the future exchange of a particular asset at a currently determined market price.
An exchange-traded obligation to buy or sell a financial instrument or to make a payment at one of the exchange's fixed delivery dates, the details of which are transparent publicly on the trading floor and for which contract settlement takes place through the exchange's clearinghouse. Gamma ( see also Delta) Gamma (or convexity) is the degree of curvature in the financial contract's price curve with respect to its underlying price. It is the rate of change of the delta with respect to changes in the underlying price. Positive gamma is favourable. Negative gamma is damaging in a sufficiently volatile market. The price of having positive gamma (or owning gamma) is time decay. Only instruments with time value have gamma. Hedge A transaction that offsets an exposure to fluctuations in financial prices of some other contract or business risk. It may consist of cash instruments or derivatives.
Essentially a promise to buy or sell a currency (or other type of investment) at a specified price on a particular date. The buyer is required to accept and the seller is required to deliver an investment such as currency or a security on that date at the specified price.