Fundamental Factors Influencing Futures Prices

In the intricate world of financial markets, futures contracts stand out as essential instruments for traders, investors, and companies aiming to hedge against price volatility. Futures contracts are agreements to buy or sell a particular commodity or monetary instrument at a predetermined worth at a particular time in the future. While these instruments will be complicated, a number of fundamental factors constantly influence their prices. Understanding these factors is crucial for anyone looking to participate successfully in futures trading.1. Supply and Demand DynamicsAt the heart of futures pricing lies the fundamental financial precept of provide and demand. This factor is…