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"Futures Contracts"

By Kimberly Amadeo, About.com

Definition: An agreement to purchase or sell a commodity for delivery in the future at an agreed upon price that may be satisfied by delivery (hardly ever used) or offset (a compensating option).

Also Known As: commodities futures contracts, oil futures contracts

Examples: Futures contracts are a derivative product typically used by hedge funds to gain more leverage in the commodities market.

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