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 investors to hedge against price fluctuations or speculate on future price movements. The futures market is a vital component of the global economy, providing liquidity and price discovery. Participants include hedgers, who seek to mitigate risk, and speculators, who aim to profit from price changes. Understanding futures is essential for anyone involved in trading or investing in financial markets.