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When it comes to derivatives trading, we usually refer to the trading of a contract between the buyer who agrees to purchase an asset at a price on a set date, and the seller, who agrees to deliver the asset at the same price on such date.
The predetermined price at which both parties agree to buy and sell the asset is called the forward price. The future date on which the delivery and payment will occur is known as the expiry date. The asset which both parties agree to transact is called the underlying asset.
You can open long or open short to gain from the rise or fall of the underlying asset price, offset risks via hedging, or adopt arbitrage strategies to make profits.