futures

Contracts for the sale of securities, such as bonds and stocks, or of certain commodities, such as grain and cotton, which call for delivery at a future time, the value of such a contract fluctuating with changes in the market value of the security or commodity. Lemonius v Mayer, 71 Miss 514, 521, 14 So 33. Transactions upon stock and commodity exchanges calling for future delivery and payment, wherein it is understood that the vendor is not at the time of the transaction the owner of the property which is the subject matter of the transaction but that he intends to purchase it on or before the date of delivery. 50 Am J1st Stock Ex § 24. Transactions in stocks or commodities ostensibly calling for future delivery and payment but which actually do not contemplate delivery under any circumstances, the arrangement, as understood by the parties, being for a settlement between the parties to be made according to the rise and fall of the market. 24 Am J1st Gaming § 66. Those who deal in "futures" are divided into three classes: First, those who use them to hedge, i.e. to insure themselves against loss by unfavorable changes in price at the time of actual delivery of what they have to sell or buy in their business; second, legitimate capitalists, who, exercising their judgment as to the conditions, purchase or sell for future delivery with a view to profit based on the law of supply and demand; and, third, gamblers, or irresponsible speculators, who buy or sell as upon the turn of a card. United States v New York Coffee & Sugar Exchange, 263 US 611, 619, 68 L Ed 475, 477, 44 S Ct 225. See margin; matching; option.