Futures contracts are legal agreements between two parties to buy or sell a specific asset at a specified date in the future at a pre-agreed price. These contracts are commonly used in financial markets, especially in the trading of commodities, stocks, and currencies. Here is some basic information about futures contracts:

1. **Purpose**: Futures contracts are intended to hedge risk or speculate on future price movements. Investors can use them to lock in the purchase or sale price of assets, helping them reduce the risks associated with market volatility.

2. **Assets**: Futures contracts can include a wide range of assets, including commodities (such as oil and wheat), currencies, financial indices, and interest rates.

3. **Commitment**: When the contract expires, the parties must abide by the terms of the contract, which means that they must complete the transaction even if prices change in the market.

4. **Trading**: Futures are traded on organized markets such as commodity exchanges (such as the Chicago Mercantile Exchange) where prices are determined based on supply and demand.

5. **Settlement**: Futures contracts can be settled either through physical delivery of the asset on the maturity date or through cash settlement, where the difference between the contract price and the actual price of the asset is paid.

6. **Risks**: Despite their benefits, futures contracts carry significant risks, especially for investors who trade them speculatively. Unexpected price movements can lead to significant losses.

Futures are an important tool in the financial markets, helping to manage risk and provide opportunities for investors and traders.