tick2trade

Module 04 · 4 chapters

Futures contracts

A futures contract is a standardised promise to buy or sell something on a later date, at a price agreed today. You usually close the promise before that date. This chapter explains what is standardised, why the contract exists, and how it differs from simply owning the shares.

  1. 01A standardised promise
  2. 02Margin is not the full price
  3. 03Marked to market each day
  4. 04Hedging and the basis