
What is the purpose of the futures contract?
Might I inquire about the underlying purpose of the futures contract? It seems to be a rather intricate financial instrument, and I am eager to understand its essence. Is it primarily a tool for hedging against potential risks in the market? Or perhaps, is it more of a speculative instrument, designed for investors to capitalize on price fluctuations? Could you elaborate on how futures contracts operate within the broader framework of financial markets, and what advantages they offer to those who utilize them?
