Futures contract is a standardized agreement between two parties to buy or sell a specific asset at a predetermined price on a future date. The asset can be commodities, currencies, stocks, or other financial instruments. Futures contracts are traded on exchanges and serve as a way for investors to hedge against price fluctuations or speculate on future price movements. The terms of the contract, including the expiration date, settlement price, and quantity of the asset, are all predetermined. Trading futures contracts involves a high level of risk and requires a good understanding of the underlying asset and market conditions.