Loading

The New Alison App has just launched Download Now

Trading in a Futures Market - Revised

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

Teaching & Academics
Free Course
In this free online course on trading in a futures market you will learn all about futures contracts and trading, and why futures trading is so important. 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.
  • Duration

    1.5-3 Hours
  • Certification

    Yes
  • Mobile Friendly

    Yes
  • Publisher

    Khan Academy
  • Accreditation

    CPD

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.

Start Course Now

Careers