A future is an undertaking to buy or sell a standard quantity of a financial asset or commodity at a future date at a fixed price. Futuresinfo-icon resemble forward contracts in that they involve buying or selling an item for receipt or delivery in the future, but are different from them in that they are standardised contracts. Every futures contract has standard terms that dictates the minimum quantity and quality that can be bought or sold, the smallest amount by which the price may change, delivery procedures, contract months and so on. They must be traded on a recognized exchange.