All terms
Definition
Contract
A futures contract is an agreement to buy or sell an asset at a future date. When trading futures, you are buying or selling contracts.
Quick take
An agreement to buy or sell at a future date.
Keep this in mind every time you see contract on the chart — context is everything.
Did You Know?
Each futures contract has a built-in expiration date — traders typically 'roll' to the next contract before expiry.
Common Beginner Mistake
Trading too many contracts at once without realizing how much one tick of movement is actually costing the account.