A futures contract is a contractual agreement, to buy or sell a particular commodity or financial instrument at a pre-determined price in the future. These agreements or transactions are generally made at a futures exchange (either on the floor or electronically). Futures exchanges are in the final stages of migrating their markets from the floor (or pit) to electronic market formats (trades matched electronically not physically by floor brokers).

There are several major futures exchanges that offer and support many diverse futures markets (products). More popular futures markets include Stock Index Futures (e.g.,emini S&P 500), Euro FX (Euro Currencies), Gold, Corn, Crude Oil and Treasury Bonds. As you can see futures represents a wide array of market sectors.