What is Futures Contract?
A futures contract is a standardized agreement, traded on an exchange, to buy or sell an asset at a set price on a future date. The exchange fixes the size, the tick and the expiry, and gains and losses are settled in cash every day. Many traders close their position before expiry.
Why Futures Contract matters
A small deposit controls a large amount of the underlying asset, so a small price move is a large share of the money in the account.