What are futures?
A futures contract is a legally binding agreement between a buyer and a seller to buy an underlying asset at an agreed time in the future at a time agreed today. The agreement is referred to as a ‘futures contract’.
Objectives for futures trading include speculation and hedging. ASX 24 provides a venue for buyers and sellers to transact futures contracts and disseminates price and data to users.
Trading in futures can benefit traders seeking either profit from speculation or protection by hedging. Like any investment, futures have risks you need to understand. You should seek independent advice from a professional adviser before investing.