Futures · Rookie
Futures contract
Also searched as: futures
What does Futures contract mean?
A futures contract is a standardized exchange-traded agreement with specified underlying exposure and settlement terms. Contract size, price increments and expiration are defined by the product.
Example
An index futures position gains or loses value as its contract price changes.
Illustrative example; not a provider’s quoted offer.Why it matters for prop traders
Know the exact contract specifications before translating a chart move into monetary risk.
Sources and further reading
The following primary sources support the terminology. Provider rules describe their own products and may change.