A financial futures contract is an agreement between two counterparties to exchange a specified amount of a financial security (bond, bill, currency or stock) at a fixed future date at a predetermined price. The contract specifies the amount of the asset to be traded, the Exchange on which the contract is traded, the delivery date and the process for delivery of the asset and funds. Financial futures contracts were first traded on the Chicago Mercantile Exchange (CME) in the United States back in 1972, and a decade later in 1982 London opened the London International Financial Futures Exchange (LIFFE) which in 2001 was merged with the Amsterdam, Paris and Belgium exchanges to create Euronext.LIFFE. Since then Euronext has also merged with the Lisbon Stock Exchange.
KeywordsInterest Rate Fund Manager Future Price Future Contract Future Index
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