In a futures contract, the buyer agrees to purchase, and the seller agrees to sell, a specific quantity of an asset at a set price on a future date. The underlying assets can include commodities like oil, gold, and wheat, as well as financial instruments like currencies, interest rates, and stock indexes. Unlike options, which give the holder the right but not the obligation to buy or sell, futures contracts obligate both parties to fulfill the terms of the agreement. Most futures contracts are closed out before the delivery date, meaning that physical delivery of the underlying asset rarely occurs.