underlying instrument
The price of futures contract is based on the actual price of its physical instrument

grade or quality
specified in futures contracts to ensure that participants trade the same type and quality of underlying instrument.

price quotation
futures prices are quoted in the same basic unit as its underlying instrument.

contract size
to the number of units or amount represented by each futures contract.

contract month
traded on the basis of specified contract month, which is simply the month of maturity or expiry

expiry date
Every contract has it date of expiry or maturity.

Any opened contract or position can be closed-out prior to maturity by taking an offset position.

Any outstanding contract, which has not been closed-out, must be settled at maturity.

Commodity futures is the futures which the underlying assets are the commodity products.

Financial futures is a futures contracts which the underlying assets are the financial products.

Open Position vs Close out position
✅ open position When the trader hold the futures contract until the expiry date.
✅ close position Closing out a position means entering into the opposite type of trade from the original one.

Long Position vs Short Position
✅ long position is The long position agrees to buy the assets when the contract expires.
✅ short position agrees to sell the assets when the contract expires.

Maintenance Margin
Margin payment is a legal requirement for every participant, be it the buyer or seller.

Basis
Basis can be defined as the difference between the cash price (spot price) of the underlying instrument (physical) and the futures price (contract).

Convergence
Generally cash and futures price move in tandem, that is, they are moving in the same direction, though not by the same amount.

Volume
volume refers to the number contracts traded

Open Interest
Open interest refers to the number of outstanding contracts for a given contract month.