What does Assignable Futures Contract mean?
A contract that allows a party of the contract to assign his rights and obligations under the contract to a third party. Once the contract holder assigns the contract to a third party, he becomes free from the contract. The new party has now all the rights and obligations under the contract. The incoming party is liable to perform and receive the benefits of that contract.
Futures Knowledge Explains Assignable Futures Contract
An assignable contract, contains a clause of assignment in the terms and conditions of the contract that permits this assignment. You can book profits or cut losses and exit even before expiry of contract. Suppose, you own a futures contract to buy 100 barrels of oil at a certain price in the future, and the value of the contract has increased by 10% since you bought it. You can transfer the contract to a third party today by way of assignment in return for cash, and you need not have to wait till expiration date. From now onwards, the third party assumes all the rights and responsibilities under the contract.