Futures Contracts are a derivative investment objects that is a contract which enables the purchaser of the contract to buy or sell a specific commodity of standardized quality at a certain date in the future, at a price that is determined by the free market. Futures contracts detail the quality and quantity of the underlying asset; which is necessary to in any sort of future exchange. The price of the underlying asset is constantly fluctuating, and usually determined by the instantaneous arbitrage that is found between the supply and demand amongst the competing buys and sell orders on the exchange at the time of the purchase or sale of the contract. The date on which the contract is sold or bought is known as the final settlement date, and the price at which the contract is sold at is known as the settlement price. A futures contract gives the person that is holding the futures contract the obligation to deliver under the terms of the contract. In comparison, an option gives the purchaser of the futures contract the right, but not the obligation to meet the requirements of the futures contract. Future contracts are usually traded by two kinds of groups; hedgers and speculators. Hedgers are the individuals that are selling the underlying asset, their interest solely lies in the underlying asset and are seeking to hedge out the risk of the possible price changes in the underlying asset. Speculators are more of the common individuals that are trying to make a profit by predicting market moves and buying on different arbitrage strategies. Options are also a part of the futures market, of which are specified by puts and calls. A put is an option to sell the futures contract, and a call is the option to buy the futures contract.