A future contract is an agreement to sell or buy a standard quantity of a particular financial instrument on a predetermined dates in the future. Once a firm has taken a position in a future contract, it has two courses of action it can take in order to close out that position;(1) selling the same future contracts in the market to realize the profit or loss (2) taking delivery of the underlying financial instruments at the price fixed when the future contracts was originally bought or sold.There are three main types of financial future contract(1) interest rate future(2) currency future(3) stock index future.