Futures

Futures derive their value from the performance of an underlying asset and are, therefore classified as derivatives. A futures contract is a standardized agreement between two parties—the buyer and the seller—where one agrees to buy an asset, and the other agrees to sell it at a specified price and date in the future. The buyer commits to either taking delivery of the asset or settling the contract in cash, depending on the type of contract, while the seller agrees to deliver the asset or make the corresponding payment.

The most common types of futures contracts are tied to commodities (such as oil, gold, or agricultural products) or financial instruments like equity indices (e.g., the S&P 500 or the Nasdaq-100) and interest rates. While commodity futures (such as crude oil, gold, or agricultural products) may involve physical delivery, many contracts are settled before expiration without the need for delivery. In contrast, financial futures like equity indices or interest rate futures are almost always cash-settled, meaning no physical asset changes hands.

To enter into a futures contract, both parties are required to post an initial margin, which is a small percentage of the contract’s total value, as collateral. This ensures both the buyer and the seller can meet their financial obligations. Futures contracts are marked-to-market daily, meaning that at the end of each trading day, the gains and losses from the price movement of the contract are settled. Margin accounts are adjusted accordingly, with the party whose position has gained value receiving the credit, and the party whose position has lost value required to pay the loss.

Databento sources futures data directly from trading venue's proprietary feeds:

• CME Group (Chicago Mercantile Exchange): CME Globex, including CME, CBOT, NYMEX, COMEX
• ICE (Intercontinental Exchange): ICE Futures Europe, ICE Endex