Zoho Bookings & SalesIQ Alignment

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Futures

Meaning:

Futures are standardized financial contracts where two parties agree to buy or sell an asset at a fixed price on a future date. They are traded on exchanges like NSE, BSE, and MCX. In simple terms, futures allow you to lock in today’s price for something you will buy or sell in the future.

Example:

If you agree to buy a gold futures contract at ₹5,000 per gram to be delivered in three months, you lock in that price today.

How to understand Futures:

Futures help protect against price changes in the future.
They allow traders to make money based on whether prices go up or down.

Importance of Futures:   

Futures provide a way for businesses and investors to manage risks related to price fluctuations.