What Is a Future Advance? A future advance is a clause in a mortgage that provides for additional availability of funds under the loan contract. If a future advance clause is included in a loan contract then the borrower can rely on obtaining funds from the lender under the terms of the contract without being
What Is Future Capital Maintenance? Future capital maintenance is a term used to account for future expenses that a company expects to incur in order to maintain its fixed assets or equipment needed to help generate income. Future capital maintenance is typically estimated by an accounting department and is written as a line item on a
What Is Future Dating? Future dating is the scheduling of a banking transaction to occur at a later date. A payment is authorized to credit a bank account, with an agreement that the funds will not be transferred and made available to the recipient until a specified point in the future. Key Takeaways Future dating
What Is Future Income Taxes? Future Income taxes are income taxes deferred by discrepancies between, for example, net income reported on a tax return and net income reported on financial statements. Computation of net income using different methods or in different time periods result in two figures. One is for tax purposes, and the other is
What Is a Future Purchase Option? A future purchase option (also known as a future increase rider) is a feature of long-term disability insurance (LDI) and some life insurance policies that allows policyholders to increase their insurance coverage periodically, or as their income increases. These increases are effected without new medical underwriting, known as guaranteed insurability.
What Are Futures? Futures are derivative financial contracts that obligate parties to buy or sell an asset at a predetermined future date and price. The buyer must purchase or the seller must sell the underlying asset at the set price, regardless of the current market price at the expiration date. Underlying assets include physical commodities
What Is a Futures Bundle? A futures bundle is a type of futures order. The bundle enables an investor to simultaneously purchase or sell a predefined number of futures contracts in each consecutive quarterly delivery month for one or more years. This single purchase of multiple futures contracts is referred to as buying futures strips.
What Is a Futures Exchange? A futures exchange is a marketplace where a diverse range of commodities futures, index futures, and options on futures contracts are bought and sold. Those who are allowed access to the exchange are brokers and commercial traders who are members of the exchange. Members need to be registered with the
What Is a Futures Market? A futures market is an auction market in which participants buy and sell commodity and futures contracts for delivery on a specified future date. Futures are exchange-traded derivatives contracts that lock in future delivery of a commodity or security at a price set today. Examples of futures markets are the
What Is a Futures Pack? Currency futures are futures contracts for currencies that specify the price of exchanging one currency for another at a future date. A futures pack is a contract to buy a set number of Eurodollars at a pre-established price in four consecutive delivery months. It is a variation on a Eurodollars futures
