Futures = A financial contract obligating the buyer to purchase an asset (or the seller to sell an asset), such as a physical commodity or a financial instrument, at a predetermined future date and price. Futures contracts detail the quality and quantity of the underlying asset; they are standardized to facilitate trading on a futures exchange. Some futures contracts may call for physical delivery of the asset, while others are settled in cash. The futures markets are characterized by the ability to use very high leverage relative to stock markets.
Hedge = Making an investment to reduce the risk of adverse price movements in an asset. Normally, a hedge consists of taking an offsetting position in a related security, such as a futures contract. Investors use this strategy when they are unsure of what the market will do. A perfect hedge reduces your risk to nothing (except for the cost of the hedge).
Currency futures = A transferable futures contract that specifies the price at which a specified currency can be bought or sold at a future date.
In short it is a pre-determined value or amount of certain things which you will deliver to buyer..at a latter stage (consider yourself a seller).
If I am correct (if not pl correct me) this is what this article is about..
Thanks sasank majumdar..as because of his link I could understand this article.
