Futures are specialized contracts that obligate the buyer to purchase, or the seller to sell, a specific underlying asset at a predetermined future date. This underlying asset can take various forms, including commodities such as oil or gold, securities like stocks or bonds, or other types of financial instruments available in the markets. Engaging in futures trading means that both parties agree to a set price for the asset, which remains fixed regardless of fluctuations in the market value leading up to the expiration date. Therefore, at that designated date, the buyer must acquire the asset at the established price, regardless of what the current market conditions may dictate.

This creates a binding agreement that can serve different strategic purposes for traders, including hedging against price changes or speculating on future market movements. These F&O Books can Help you understand the future and options in depth after learning the strategies from a book you can maximize your profits.