Futures

Futures - An introduction

Level: Beginner / Length: 20 minutes / Pages: 14
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.

You’ll see an example of a Futures trade outlined simply in a video. What is the process involved?

With a series of videos you’ll learn about what the key phrases associated with Futures mean and what to look out for.

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

Non-Independent Investment Research
Any information which could be construed as investment research has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Further it is not subject to any prohibition on dealing ahead of the dissemination of investment research. The Saxo Bank Group may perform services for, solicit business from, hold long or short positions in, or otherwise be interested in the investments (including derivatives), of any issuer mentioned herein.