Futures typically pertain to commodities such as corn wheat or oil. Say you want to buy oil in march. The oil has not yet been produced nor do you know what it will cost in March. So you may want to hedge your purchase with a futures order. You contract to buy oil, in March at $80/barrel. maybe you buy 100 barrels. You pay a premium for this purchase maybe $5/barrel (I don’t have the exact figure). If in March the oil is selling for $90/barrel you buy it at $80 per your contract. Don’t forget you’ve already paid the $5 so your real price is $85. Still a bargain. If however, the price is less than $80 in March. you abandon you contract and buy it at market price, maybe $75/barrel. When you abandoned the contract however, you lost your $5/barrel investment.
Futures provide both investors and producers a way to insure thier cost/revenue. If you think the price of something will go up, you may want to buy futures. If you think it will go down, you may want to sell futures. Of course if you are guessing the same way as everybody else, futures get very expensive.
Just a thumbnail sketch of how they work.