A futures contract is a bond between a buyer and a seller at a future date. The contract trades on a future exchange and is motif to a daily agreement procedure. Stock futures trading are a way to hedgerow yourself in stock trading. In other words, stock futures trading is a funding option and this can be traded on the markets in a manner similar to ordinary stocks. This type of trading is generally oversee on a margin basis, that is, you only need to pay a small part of the amount of the stock when you enter into a contract. Future contracts evolved out of forward contracts and possess many of the same characteristics.