This Factsheet provides an overview of commonly-used price risk management tools as well as concise and easily understandable definitions of terms used by those providing risk management advice. Futures markets are price discovery and risk management institutions. In futures markets, the competing expectations of traders interact to “discover” prices. In so doing, they reflect a broad range of information that exists on upcoming market conditions. Futures markets are actually designed as vehicles for establishing future prices and managing risk so you can avoid gambling if you want. Futures contracts are sometimes confused with forward contracts. While similar, they are not at all the same.