What are Futures
Futures are financial derivatives that are publicly traded similar to equity, forex or options. A futures contract allows the owner to buy the underlying asset at a predefined price at a specific time in the futures. With this a farmer can sell his grain long before the harvest and lock in the price. On the other hand a consumer of commodities can buy goods early to secure his supply and lower purchasing risk. Futures exist for stock indices, bonds, energies (oil, gasoline, gas etc.), agricultural products (soybeans, wheat, corn, coffee etc.), metals (gold, silver, copper etc.) or forex.