Level: Beginner / Length: 13 minutes
This module is all about futures trading, what futures contracts actually are, how they work in the marketplace and why you might want to start trading them. Though not a preferred instrument for risk-averse investors, the futures market is extremely liquid and is therefore highly attractive to the more enterprising trader.
The simple definition of a futures contract is that it’s an agreement between a buyer and a seller. It’s an agreement to buy or sell a specific asset – such as a commodity or a financial instrument - at an agreed price at a date in the future. futures are traded on exchanges all over the world. Most futures traders don’t engage to take delivery of the asset – bushels of corn for example – instead they speculate on price movements, similar to stock investments. In this course you’ll learn about:
- The workings of a futures contract
- Hedgers and speculators and their roles
- The key terminology used in futures trading
- How futures might work for your trading