Future contracts:
It is an Agreement to buy or sell an asset it is at a certain time in the future for a certain price. Futures will be traded in exchanges only.These is settled daily.
Futures are four types:
1. Commodity Futures: Wheat, Soyo, Tea, Corn etc..,.
2. Financial Futures: Treasury bills, Debentures, Equity Shares, bonds, etc..,
3. Currency Futures: Major convertible Currencies like Dollars, Founds, Yens, and Euros.
4. Index Futures: Underline assets are famous stock market indicies. NewYork Stock Exchange.
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