<h2>Futures Market</h2>
<p>A futures market is a financial exchange where contracts for the delivery of assets at predetermined prices and dates are traded. These contracts, known as futures, are standardized agreements between buyers and sellers.</p>

<h2>How It Works</h2>
<p>Futures markets operate through a process called margining. Participants post initial margin, a good faith deposit, to secure their position. Daily mark-to-market adjustments, known as variation margin, are made to reflect gains or losses.</p>
<p>Key participants include producers, consumers, speculators, and arbitrageurs. They use futures to hedge against price fluctuations, manage risk, or bet on price movements.</p>
<p>Futures contracts are standardized, with fixed quantities, qualities, and delivery dates. They are traded on exchanges, with clearinghouses guaranteeing contracts and ensuring settlement.</p>

<h2>Why It Matters</h2>
<p>Futures markets play a crucial role in the global economy. They provide price discovery, enabling producers and consumers to plan and make informed decisions. For instance, farmers can lock in prices for their crops, and airlines can hedge against fuel price volatility.</p>
<p>Moreover, futures markets offer liquidity and transparency, attracting speculators who provide market depth and help maintain fair pricing. They also facilitate risk transfer, allowing participants to shift uncertain outcomes to those better equipped to bear them.</p>