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| | futures contract Definition |
 | | A standardized, transferable, exchange-traded contract that requires delivery of a commodity, bond, currency, or stock index, at a specified price, on a specified future date. |
 | | Futures contracts are forward contracts, meaning they represent a pledge to make a certain transaction at a future date. |
 | | Futures are distinguished from generic forward contracts in that they contain standardized terms, trade on a formal exchange, are regulated by overseeing agencies, and are guaranteed by clearinghouses. |
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