(Eli5) how far in the future are “futures” contracts, for things like wheat, USD and gold? Are indices in the ‘future’ too?
In: 2
However long the seller and buyer agree. It’s a contract into which both parties agree to fulfill obligations:
* the seller agrees to sell on a particular date (or within a range of dates) for a particualr price;
* the buyer agrees to buy a specific amount on a specific date (or within a range of dates).
The contract soecified penalties should either party fail to fulfill the agreement.
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