Futures Contract

February 1, 2026 · 1 min read

Futures Contract is a derivatives-market concept used to price contracts and measure risk sensitivities. The key is what changes when it moves up or down-prices, cash flows, risk, or incentives.

Example: Options can hedge downside risk or provide leveraged exposure to price moves.

Related terms: Quantitative Tightening (QT), Output Gap, Refinancing.