A commodities market in which delivery of not-yet-produced goods or services are purchased and sold using auction or stock-market-style bidding procedures. Buying and selling on this market is risky for both buyer and seller, because prices may change dramatically in either party's favor between the time that the futures contract is purchased the time that the actual delivery and sale is made. In return for these risks, sellers can raise operating capital on this market by selling their future production, and buyers can lock in prices on needed goods and services as a hedge against unanticipated price increases.

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