Futures contracts are standardized agreements listed on exchanges that require the buyer to purchase, and the seller to sell, a specific asset at a set price on a predetermined date. Unlike options, which give the buyer the right but not obligation to buy or sell, futures contracts obligate both parties to fulfill the contract terms. They are used for hedging risk or speculative trading. The value of futures contracts is derived from the underlying asset, which can include cryptocurrencies, stocks, commodities, and indexes.