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: a contract traded on an exchange in which a party agrees to buy or sell a quantity of a bulk commodity (as soybeans) at a specified future date and at a set price usually used in pl. NOTE: If the price of the commodity has gone up when the future date arrives, the buyer in the contract profits. If the price has gone down, the seller profits.
Source: Merriam-Webster's Dictionary of Law ©1996. Merriam-Webster, Incorporated. Published under license with Merriam-Webster, Incorporated.