Futures are defined as a contract between buyer and seller to purchase a specific commodity or any asset in the future but at a price agreed upon at the same time. The price is called the "execution price" while the future date of delivery of the asset is called the "delivery date"
The buyer is obliged to purchase on the specified delivery date and the seller is also obliged to sell. This is the difference between future contracts and optional contracts, in which the seller is not obliged to execute the transaction alone and the buyer has the right not to execute it.
Example: The seller offers 10 tons of corn, which has not yet grown, for sale. The buyer and the seller agree on the delivery date, which is after the harvest at $ 100 per ton, a total value estimated at $ 1000. When delivery date comes, the seller transfers the agreed corn amount to the buyer.
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