FIXED FUTURES Meaning and
Definition
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Fixed futures refers to a financial arrangement or contract in which the terms for a future transaction are predetermined and unalterable. It is a binding agreement between two parties to buy or sell a specific asset at a predetermined price, on a specified future date. The fixed aspect of this type of futures contract lies in the fact that all the key parameters, such as the price, quantity, and delivery date, are firmly set from the outset and cannot be modified.
Fixed futures are commonly used in various markets, such as commodities, currencies, and financial instruments, to hedge against potential risks and uncertainties. They serve as a means of safeguarding against adverse price movements or economic fluctuations. By entering into a fixed futures contract, both parties involved can secure a definite buying or selling price, reducing the impact of unforeseen market volatility.
These contracts typically trade on organized exchanges, where standardized terms and conditions are established. Participants in fixed futures contracts can include individual investors, corporations, financial institutions, and speculators seeking to profit from anticipated price movements.
In summary, fixed futures are a type of financial derivative where the terms of a future transaction are predetermined and unchangeable. They allow participants to mitigate risks associated with price fluctuations and ensure certainty in the future execution of the transaction.
Common Misspellings for FIXED FUTURES
- dixed futures
- cixed futures
- vixed futures
- gixed futures
- tixed futures
- rixed futures
- fuxed futures
- fjxed futures
- fkxed futures
- foxed futures
- f9xed futures
- f8xed futures
- fized futures
- ficed futures
- fided futures
- fised futures
- fixwd futures
- fixsd futures
- fixdd futures
- fixrd futures
Etymology of FIXED FUTURES
The term "fixed futures" does not have a specific etymology on its own. However, we can break it down to understand the origins of its component words.
1. "Fixed": The word "fixed" originates from the Latin word "fixus" which means 'fastened' or 'set in place'. It entered English in the 14th century, referring to something that is securely placed or immovable.
2. "Futures": The word "future" derives from the Latin word "futurus" which means 'about to be'. It entered English in the late 14th century, referring to the time or period that follows the present.
When combined, "fixed futures" suggests a term in the financial or investment domain where it may refer to a specific type of financial contract or investment instrument with predetermined terms or conditions set for a future date.
