A futures contract is a standardized legal agreement to buy or sell an asset—such as a commodity or financial instrument—at a predetermined price on a specified future date, deriving its value from the underlying asset as a form of derivative. These contracts primarily help parties hedge against price or exchange-rate risks, while also enabling speculation on price movements; both sides typically post a margin (often 2–20% of the contract's value) to protect against default. The history of futures traces back to the Dōjima Rice Exchange in Osaka (1697), but the first standardized exchange-traded contracts were introduced by the Chicago Board of Trade (CBOT) in 1864 for grain trading, with financial futures following in 1972. Today, they span everything from agricultural goods and oil to stock market indices and interest rates, and are increasingly used by retail traders for leverage and risk management. Interestingly, the concept has even been proposed for organ futures to boost transplant supply, while stock index futures often serve as key indicators of overall market sentiment.