What are the basic Futures Jargons?

Futures are financial contracts. The buyer purchases an asset in advance at a preset rate; futures are standardized to trading on a future date but at a price set earlier.
This contract makes the buyer obliged to buy and a seller to deliver the asset. On the other hand, the actual delivery of the asset is unusual in real life as futures are used for price speculation of the commodity or hedging.
Hedging is essentially locking down a price in advance. The price will be the forecast of the asset at the time in the future and not the current price. If a company is certainly going to buy an asset in the future, it hedges to remove the uncertainty in price due to fluctuations.
This makes planning easier, improved investing, and distribution of funds. The risk of sudden hike in price can be removed. The company is held to take a long position.

A short hedge is the same deal for the seller. If the selling company is certainly selling the asset in the future, it locks down on the future price. Buyers can turn to sellers of the same picky contract, but contrasting in the share market he will be essentially buying the asset and then reselling it if it comes to settlement.
Price speculation is the forecast of the price of an asset in the future financial market. Speculation is significant for hedging as, without the future price, hedging would not be a model.
As the future trading is based on the future of the asset, it is called a derivative contract.
Derivatives are financial instruments that obtain its value from another value; therefore, as the future price is dependent on the trends of the asset and its current or spot value, it is called a derivative.
Forward contracts, futures and hedging are widespread with commodity trading.