Dictionary

Futures Contract

A contract between two parties to buy or sell an asset for a price agreed upon today (the futures price) with delivery and payment occurring at a future point (the delivery date). Considered a derivatives product because it is a function of an underlying asset. The buyer of the contract is said to be “long”, while the party selling the contract is said to be "short".

 

Wikipedia: https://en.wikipedia.org/wiki/Futures_contract#