// definition
Futures
Standardised exchange-traded contract
freshreviewed 0 days ago
Short definition
A standardised, centrally cleared contract traded on an exchange. It creates exposure to an underlying asset with margin deposits and settlement of changes in value. Notional is a reference amount: opening a short futures position does not generate that amount in cash. Contract terms specify physical delivery or cash settlement at expiry.
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Knowledge map
Intuition
The contract exposes a reference amount to price changes, while cash moves through margins and settlement.