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Futures Terms |
| Browse our glossary of terms by using the Alphabet below. You may also search the glossary by using the search box in the right column. | |
| F | |
| Pages: 1 | |
| Term | Definition |
|---|---|
| Fair Value | The state wherein the basis between the stock and the future is trading at its expected level. |
| Forward | An privately negotiated agreement to complete a transaction at a time in the future, at a price negotiated now. |
| Forward Curve | The price of a series of futures contracts over a number of delivery months. |
| Future Value of Expected Dividend | The value of the dividend after it is reinvested between receipt and the expiration of the future. The future value of the dividend is a function of time and of the level of interest rates. |
| Futures | A future contract is an obligation to purchase or sell a fixed underlying asset or cash-equivalent thereof, at a fixed time and location. The obligation to purchase (or take delivery) is called a "long" position, while the obligation to sell (or make delivery) is called a "short" position. Futures are standardized contracts, allowing for ease of buying and selling on a central organized marketplace. |