Background Note | HBS Case Collection | December 1982 (Revised November 2006)

Note on Futures Contracts

by David E. Bell

Abstract

Provides an introduction to futures contracts, what they are, what their use in hedging is, and their usefulness in providing forecasts. Also covers basic risk. Includes a list of commodities currently traded in futures markets and the necessary properties of a commodity that make it tradable in a futures market.

Keywords: Futures and Commodity Futures;

Citation:

Bell, David E. "Note on Futures Contracts." Harvard Business School Background Note 183-126, December 1982. (Revised November 2006.)