Financial futures are contracts that obligate the buyer to purchase, and the seller to sell, an asset at a predetermined price on a specified future date. These contracts are commonly used for commodities like oil or gold, as well as financial instruments such as stock indices and currencies. They help investors hedge against price fluctuations or speculate on future price movements. Traders in financial futures can benefit from leverage, allowing them to control a larger position with a smaller amount of capital. However, this also increases the risk of significant losses. Overall, financial futures play a crucial role in the global financial markets by providing a mechanism for price discovery and risk management.