The futures markets are among the most liquid and widely traded markets in the forex market. Futures contracts are contracts that buyers and sellers enter into that agree to buy and sell an asset at a specific price on a predetermined date. These are often used as a hedging instrument as they provide traders with the ability to offset risk by buying and selling the futures contracts. Futures trading is popular due to the ease of entry, low transaction costs, and their liquidity. It is one of the more popular markets for traders because of the liquidity and low transaction costs.