Futures and Derivatives │ Important Vocabulary │ BBA Notes │ Business Communication │ 3rd Semester │ TU

Futures and Derivatives



Important Vocabulary


  • Futures: Contracts to buy or sell fixed quantities of a commodity, currency, or financial asset at a future date, at a price fixed at the time of making the contract
  • Options: Contracts giving the right, but not the obligation, to buy or sell a security, a currency, or a commodity at a fixed price during a certain period of time
  • Commodities: Raw materials or primary products (metals, cereals, coffee, etc.) that are traded in special markets
  • Derivatives: A general name for all financial instruments whose price depends on the movement of another price
  • Hedging: Making contracts to buy or sell a commodity or financial asset at a pre-arranged price in the future as protection or 'insurance' against price changes
  • Speculation: Buying securities or other assets in the hope of making a capital gain by selling them at a higher price (or selling them in the hope of buying them back at a lower price)




Finding the Opposite of the Terms Below


  • appreciate - depreciate
  • call - put
  • discount - premium
  • drought - flood
  • floating - fixed
  • hedging - speculation
  • spot market - future market
  • strike price - market price


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Extracted From:

MacKenzie, I. (2002). English for Business Studies: A course for Business Studies and Economics students (Second). Cambridge University Press.



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