[Verse 1]
Two traders shake hands on a grain deal in spring
But harvest could crumble or fortune could bring
A forward agreement, just promises made
No guarantee either will honor the trade
[Verse 2]
But futures are different, they're carved into stone
Exchanges create them, you're never alone
Each contract's identical, terms set in advance
Size, grade, and delivery - nothing left to chance
[Chorus]
Standard, exchange, clearing house too
Futures protect both me and you
Margin and marking, daily we settle
No credit risk in this financial kettle
Standard, exchange, clearing house shield
Futures make promises legally sealed
[Verse 3]
The clearing house steps between every deal
If one party stumbles, they make losses real
Daily they mark up the gains and the losses
Transfer the money like financial bosses
[Verse 4]
Five thousand bushels of winter wheat grade
December delivery, price locked and weighed
Unlike a forward with custom-made terms
Futures trade freely where liquidity churns
[Chorus]
Standard, exchange, clearing house too
Futures protect both me and you
Margin and marking, daily we settle
No credit risk in this financial kettle
Standard, exchange, clearing house shield
Futures make promises legally sealed
[Bridge]
Forwards are handshakes between just two parties
Futures are symphonies played by whole armies
Standardized contracts that flow like a river
While clearing houses make safety deliver
[Outro]
From corn to currencies, oil to gold
Futures make markets where contracts are sold
Remember the trio that makes them work right
Standard, exchange, clearing house might