Editing Futures contract (section)

===Hedgers===
Hedgers typically include producers and [[consumer]]s of a commodity or the owner of an asset or assets subject to certain influences such as an interest rate. For example, in traditional [[commodity market]]s, [[farmer]]s often sell futures contracts for the crops and livestock they produce to guarantee a certain price, making it easier for them to plan. Similarly, livestock producers often purchase futures to cover their feed costs, so that they can plan on a fixed cost for feed. In modern (financial) markets, "producers" of [[interest rate swaps]] or [[equity derivative]] products will use financial futures or equity index futures to reduce or remove the risk on the [[swap (finance)|swap]].

Those that buy or sell commodity futures need to be careful. If a company buys contracts hedging against price increases, but in fact, the market price of the commodity is substantially lower at the time of delivery, they could find themselves disastrously non-competitive (for example see: [[VeraSun Energy]]).

Investment fund managers at the portfolio and the fund sponsor level can use financial asset futures to manage portfolio interest rate risk, or duration, without making cash purchases or sales using bond futures.<ref>{{Cite web|url=https://www.cfainstitute.org/-/media/documents/protected/refresher-reading/2020/pdf/swaps-forwards-futures-strategies.ashx|title=Swaps, Forwards, and Futures Strategies|last1=Valbuzzi|first1=Barbara|publisher=CFA Institute|pages=7–8|year=2019|access-date=2020-05-18}}</ref> Invest firms that receive capital calls or capital inflows in a different currency than their base currency could use currency futures to hedge the currency risk of that inflow in the future.<ref>{{Cite web|url=https://www.cfainstitute.org/-/media/documents/protected/refresher-reading/2020/pdf/swaps-forwards-futures-strategies.ashx|title=Swaps, Forwards, and Futures Strategies|last1=Valbuzzi|first1=Barbara|publisher=CFA Institute|page=17|year=2019|access-date=2020-05-18}}</ref>