Futures and Derivatives
Courtesy/ free pik

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

Extracted From

MacKenzie, I. (2002). English for Business Studies: A course for Business Studies and Economics students (2nd ed.). Cambridge University Press.

Previous articleMarket Structure and Competition | Business Communication | Vocabulary
Next articleBonds | Business Communication | Vocabulary
Founder and Author at Superb Future. Babu is a student of Business specializing in Sales and Marketing Management. "Everyone is a marketer, whether you are a businessman or a homemaker."


Please enter your comment!
Please enter your name here