(Eli5) how far in the future are “futures” contracts, for things like wheat, USD and gold? Are indices in the ‘future’ too?

18 views
0

(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.

There are many futures contract time period. Some commodities have futures for every month of the year. So, today you can probably buy December 2022 futures, January 2023 futures, February futures etc etc. In some commodities there may be futures sold with expiry dates going out more than a year.