Futures contract is the object or subject matter of futures trading, and it is a standardized contract made by futures exchange and agreed to deliver a certain quantity and quality of goods at a specific time and place. Futures prices are reached through public bidding.
Futures contracts are the objects of futures trading. It is by buying and selling futures contracts on the futures exchange that participants in futures trading transfer price risk and gain risk income. Futures contracts are developed on the basis of spot contracts and spot forward contracts, but their most essential difference lies in the standardization of futures contract terms. Futures contracts traded in the futures market are standardized in the quantity, quality grade, delivery grade, premium standard of substitutes, delivery place and delivery month, which makes futures contracts universal. In the futures contract, only the futures price is the only variable, which is generated by public bidding in the transaction.