INTRO TO FUTURES Futures are contracts between twoparties to exchange a given amount of product for a particular price at some point in the future. These contracts have an agrarian history — they were initially used by farmers to set prices with buyers prior to harvesting crops. With a futures contract, both the producer and buyer minimize future uncertainty by arranging a price that is beneficial to both. While many futures contracts still involve the actual purchase of things like pork bellies, corn and oil, there is a large amount of futures trading done by investors as a way to hedge against market uncertainty. Traders buy and sell futures on commodities, precious metals, currencies and stock indexes on organized electronic trading systems.
This Futures Training and Learning Guide includes the following information:
- Opportunity & Risk
- Introduction to Futures
- Arithmetic of Futures Trading
- How to Participate in Futures Trading and NFA Resources