A futures market is a financial platform where participants can buy and sell contracts for the delivery of assets at a predetermined price on a specific future date. These assets can include commodities like oil, wheat, or gold, as well as financial instruments like stock indices or currencies. The primary purpose of this market is to hedge against price fluctuations or to speculate on future price movements. In a futures market, traders enter into agreements to either buy (long position) or sell (short position) the underlying asset. This allows them to manage risk or potentially profit from changes in market prices. Futures contracts are standardized and traded on exchanges, ensuring transparency and liquidity for participants.