Cyber*School

v. FRA

the future value contains capital and interest and can be calculated from the present value by adding accrued interest

agreement to sell or purchase a financial instrument or commodity at a particular price on a stipulated date in the future,contrary to forward contracts futures are exchange traded

Agreement about a future purchase or sale of a particular amount of a commodity in which delivery and payment take place at a specified date and at a specified price.

On the futures market fulfillment of a transaction takes place at a future date. Price, quantity and date of fulfillment are already fixed with the execution of the transaction . Contrary cash market

a series of futures,such a kind a longer period can be producedexample: by using March, June and September 3-months LIBOR futures a 9-months period from March till December can be produced.

Funds which investin the futures or options markets. The choices are (in addition to financial futures) as forward contracts on equities, interest rates, indices and currencies as well as futures contracts on precious metals, agricultural goods and raw materials (collectively Commodities). Futures funds have a significantly higher risk than other securities funds due to the leverage effect of derivative products.

abbr.

v. SAFE