Buy Futures Contract Example Apr 2026

By harvest, corn hits $6.00 in the open market. The manufacturer's contract allows them to buy at $5.00, effectively saving $5,000.

A speculator with no interest in owning actual oil believes prices will rise due to geopolitical tension. What Are Futures? How Futures Contracts Work buy futures contract example

Imagine a cereal manufacturer that needs 5,000 bushels of corn in three months. They fear corn prices will rise, which would hurt their profit margins. By harvest, corn hits $6

Profits and losses are calculated and settled in your account at the end of every trading day. effectively saving $5