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elearning > Futures markets

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Learn about the following:

What futures contracts are. Where futures prices come from. How futures are used.
Why futures are different. Margins.

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Course Summary

Futures menuFutures explainedFutures pricing

Futures basisFutures clearing 1Futures clearing 2

  • 35 minutes
  • 9 question multiple choice test
  • What futures contracts are
  • Where futures prices come from
  • How futures are used
  • Why futures are different
  • Margins 

Futures Markets - the details

1. What are futures contracts?

  • Definition
  • Hedging and trading
  • Long and short positions
  • Tick value, profits and losses, example (Eurodollar)
  • Dealer’s risks and limits 

2. Futures prices

  • Spot, forward and the cost of carry, example
  • Arbitrage
  • The basis and basis trading

3. Why futures are different

  • Standardisation
  • Price transparency
  • Credit risk, the clearing house
  • Initial and variation margin
  • Comparison with over-the-counter products

4. Summary

5. Test

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