course bundle

INTRODUCTION TO FUTURE CONTRACTS

Futures Contracts
Courses Info

Sypnosis

This course covers the most basic of derivative contracts, namely futures contracts, and how they work. The main uses of futures contracts are to reduce risk, to lock in the supply or sale of a commodity in the future, and to earn a profit for taking on risks. We also discuss the uses of futures contracts and the various risks associated with futures.


Objectives
  • Know the difference between a spot transaction and a futures contract.
  • Understand how a forward contract compares with a futures contract.
  • Know the use of futures for hedging risks and for speculative purposes.
  • Know what going “long” and “short” mean.
  • Know the mechanics of a futures contract.
  • Learn the key features to note in a futures term sheet.
  • Know the various types of risk in using futures, such as basis risk, market–to–market risk, liquidity risk and leverage.
Courses syllabus
title estimate time
Introduction to Futures Contracts
Future Contracts 35:00
Users of Futures Contracts 25:00