1.   Next, the issue of whether the return on a futures contract includes a risk premium is examined.

2.   The prices of forward exchange and futures contract are virtually identical once contracts have same maturity dates.

3.   In this chapter, we consider forward contracts and futures contracts, the differences between them and how they are priced.

4.   A futures contract is also an agreement between two counterparties that fixes the terms of an exchange that will take place between them at some future date.

5.   Futures contracts are standardized agreements to exchange specific types of good, in specific amounts and at specific future delivery or maturity dates.

6.   The order is confirmed with customers, and a futures contract exists.

7.   It is also possible to unwind a futures contract at any time by performing a reversing trade, so futures contracts are generally extremely liquid.