Adjusted Futures Price Definition

Forex Glossary

Definition

The term corrected futures contract refers to some value which reflects the cash equivalent of a futures contract. Adjusted futures will consider account carrying costs in addition to conversion factors.

Explanation

One of those values that an investor will fall upon from the futures market is the adjusted futures contract to get a contract. This value is merely the purchase price of the underlying strength times the conversion factor, that’s the variety of components of the underlying asset to be delivered. This value is corrected for taking costs in addition to the charge to deliver the advantage. Efficiently, the futures market is what it’d cost a buyer to get, fund, and send each the inherent assets given in the purchase price.

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