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Forward and futures contracts are not securities but rather trade agreements that enable both buyers and sellers of an underlying physical commodity or financial instrument to lock in eventual price of their traction. Future contract is a standardized, transferable, exchange-traded contract that requires delivery of a commodity, bond, currency, or stock index, at a specified price, on a specified future date. Unlike options, futures convey an obligation to buy. Forward contract is a kind of cash market transaction in which a seller agrees to deliver a specific cash commodity to a buyer at ...