Futures are financial contracts obligating the buyer to purchase, and the seller to sell, an asset at a predetermined future date and price. These contracts are commonly used for commodities like oil and gold, as well as financial instruments such as stock indices. Futures trading allows participants to hedge against price fluctuations or speculate on future price movements. The market for futures is highly regulated and operates on exchanges like the Chicago Mercantile Exchange. Traders can leverage their positions, which means they can control a larger amount of the asset with a smaller amount of capital. This can amplify both potential gains and losses, making futures trading a high-risk endeavor.