What is the primary goal when buying futures contracts?

The primary goal when buying futures contracts is to speculate on the price movements of a commodity or financial instrument. Investors purchase these contracts with the expectation that the price of the underlying asset will increase in the future. If the price does rise, the investor can then sell the contract at a profit.

Futures contracts serve as a method for participants to hedge against potential price fluctuations, but when it comes to the objective of buying contracts, the focus is typically on the speculative aspect. This allows investors to leverage their positions and potentially achieve significant returns if their predictions about future price movements are accurate.

In contrast, maintaining steady prices or maximizing liquidity are more related to market stability and efficiency, rather than the specific goal of individual investors entering the futures market. Ensuring dividends are paid first pertains more to equity investments and does not apply to the context of futures contracts, as these instruments do not offer dividends.