A Future is a contract where a seller agrees to deliver to a buyer a specified quantity (and quality) of a ”product” at a specific price on a specified date in the future.

This ”product” may be an agricultural good (wheat, cotton), a metal (gold), energy good (oil), a financial instrument such a Stock Index (DAX), an exchange rate (EURUSD) and many others.

Futures are standardised and tradable products, the trading of which is regulated by the respective Futures Exchanges which assume the responsibility to regulate the business relationship of buyers and sellers, facilitate market liquidity, and maintain the regulatory framework. In spite of the fact that physical delivery of the underlying product is possible, it is not supported by CISCO. Today, a big share of futures trading is executed so as to benefit from the volatility in the price of the underlying product.