Futures are financial contracts where two parties agree to buy or sell an asset at a predetermined price on a specific future date.
Futures are a type of derivative used for hedging and speculation. They are standardized contracts traded on exchanges, allowing participants to lock in prices of assets like stocks, commodities, or indices.
In India, futures trading takes place on exchanges like the National Stock Exchange and Bombay Stock Exchange, regulated by the Securities and Exchange Board of India.
"A trader buys a gold futures contract at ₹60,000 per 10 grams for delivery after 3 months. If price rises to ₹62,000, they profit."