What type of asset does a futures contract specifically deal with?

A futures contract is a standardized agreement to buy or sell a specific quantity of an asset at a predetermined price on a specified future date. This asset can encompass a wide range of financial instruments. Futures contracts are commonly used for various types of underlying assets, including commodities, financial instruments, currencies, and indices.

The broad nature of futures contracts allows for trading in different markets, such as agricultural products, metals, energy products, stock indices, and Treasury bonds. This flexibility is essential for hedging risks or speculating on price movements across the diverse asset classes available in the financial markets. Consequently, the characterization of futures contracts as dealing with any type of financial instrument reflects their versatility and importance in both hedging and investment strategies.