Financial futures are futures contracts on a financial product, as opposed to (for example) a physical commodity like wheat, coffee, gold or pork bellies. Financial futures include futures on currencies, stock indices, and Treasury securities.
As in other futures contracts, the counterparties agree to trade the underlying financial product at a certain time for a certain price. Some financial futures are settled in cash, especially if the underlying assets are indices.
- Financial Futures: Between a Business and Its Global Consumers. FuturesFundamentals.org.