Write your awesome label here.

Introduction to Futures Trading

Futures contracts are a very versatile and liquid derivative instrument, leading them to be used worldwide for speculation and hedging, in equity, fixed income, commodity, and currency markets.

17 Modules

Overview

Certificate

Buy Now

A futures contract is a standardized contract between two parties to buy or sell a particular asset at a specified future date for a price agreed today. Futures contracts are a very versatile and liquid derivative instrument, leading them to be used worldwide for speculation and hedging, in equity, fixed income, commodity, and currency markets. Before the advent of futures contracts, traders had to worry about counterparty risk, but since futures contracts are cleared and use the system of margining, the counterparty risk is virtually eliminated.

Futures are used for protection against the risk of an adverse price move, but they are also used for their ability to "leverage," allowing higher returns with less outlay of initial capital. This leveraging ability allows smaller traders to access markets and positions they would otherwise be unable to trade.

Futures contracts are very popular instruments and are used by every major financial institution in the world. A good understanding of how they work, and how they are used, is invaluable to any market participant.

When were futures first used?
How do futures contracts work?
How are they traded on exchanges?
How are futures used in trading strategies?
How are futures used for hedging positions?
How are new technologies and trading methods affecting futures markets?

Recruits to institutions with derivatives operations, risk managers, research staff, sales and marketing executives, operations and support staff looking to further their derivatives product knowledge, and compliance professionals.