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Trading in a Futures Market

Gain a better understanding of the world of futures trading, as well as its importance in the world of finance.

Finances and Banking
Free Course
A futures market is defined as a contract to buy certain quantities of a product or financial instrument at a specified price, with the delivery date set at a specified time in the future. It is considered a central financial exchange where people can trade standardized futures contracts. In a clear and easy to understand manner, this course will teach you all about the world of the futures contracts and trading, along with its importance.
  • Duration

    1-2 Hours
  • Assessment

    Yes
  • Certification

    Yes
  • Publisher

    Khan Academy

Description

Modules

Outcome

Certification

View course modules

Description

This course starts off by helping you understand what Contango means, examining how Contango is used in the financial markets, and showing you how it reflects the demand for a commodity. It will further explain how money is made based on the demand for a certain commodity and the trade-off between wanting a commodity now or waiting for it at a later date for a given price.

High demand commodities are products that are normally traded in the futures market. Some examples of these commodities are gold, silver, oil, and corn. You will discuss how future curves will give you a snapshot of how much money you can earn if you acquire these high demand commodities today. Finally, you will learn the difference between Contango and backwardation and know more about the Contango theory and the normal backwardation theory.

Futures market trading dates back to the mid-1800s and has since been an important activity in the world of finance. It can have a great impact on all our lives as it affects the future prices of essential items such as food, energy sources, and raw materials. If you are a financial player, investor, or speculator who is wondering whether futures deserve a spot in your investment portfolio, you might want to check this course out.

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Learning Outcomes

Learning outcomes: - Understanding what does Contango mean in financial terms; - Examine how Contango is used in the financial markets; - Learn how Contangos reflect the demand for a commodity.

Certification

All Alison courses are free to enrol, study and complete. To successfully complete this Certificate course and become an Alison Graduate, you need to achieve 80% or higher in each course assessment. Once you have completed this Certificate course, you have the option to acquire official Certification, which is a great way to share your achievement with the world. Your Alison Certification is:

Ideal for sharing with potential employers - include it in your CV, professional social media profiles and job applications
An indication of your commitment to continuously learn, upskill and achieve high results
An incentive for you to continue empowering yourself through lifelong learning

Alison offers 3 types of Certification for completed Certificate courses:

Digital Certificate - a downloadable Certificate in PDF format, immediately available to you when you complete your purchase
Certificate - a physical version of your officially branded and security-marked Certificate, posted to you with FREE shipping
Framed Certificate - a physical version of your officially branded and security-marked Certificate in a stylish frame, posted to you with FREE shipping

All Certification is available to purchase through the Alison Shop. For more information on purchasing Alison Certification, please visit our faqs. If you decide not to purchase your Alison Certification, you can still demonstrate your achievement by sharing your Learner Record or Learner Achievement Verification, both of which are accessible from your Dashboard. For more details on our Certification pricing, please visit our Pricing Page.

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    This Course has been revised!

    For a more enjoyable learning experience, we recommend that you study the mobile-friendly republished version of this course.

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