Futures Market Law and Legal Definition

Futures market refers to trading of commodities wherein the goods are delivered at a future time. The futures market provides a market place for securities and carries out the functions commonly performed by a stock exchange. The contract dealing with exchange of commodities with respect to futures market is known as futures contract. Futures contract refers to an agreement to buy or sell a standardized asset at a fixed price at a future time, usually during a particular time of a month. One of the main economic functions of futures market is that it provides reliable pricing information.[American Agric. Movement v. Board of Trade, 848 F. Supp. 814, 821 (N.D. Ill. 1994)]