# Futures Contract

*Derivatives & Options — Finicade finance glossary*

A binding agreement to buy or sell something at a fixed price on a future date. Farmers use them to lock in harvest prices, airlines to pin down fuel costs, traders to bet on where prices go — all on standardised, exchange-guaranteed terms.

**Also known as:** futures, future

**Related terms:** [Forward Contract](https://finicade.com/glossary/forward-contract), [Hedging](https://finicade.com/glossary/hedging), [Commodities](https://finicade.com/glossary/commodities), [Cost of Carry](https://finicade.com/glossary/cost-of-carry)

**Taught in:** Charter Climb — Derivatives: Forwards & Futures

Source: https://finicade.com/glossary/futures-contract