Forward and futures contracts

19 videos
In many commodities markets, it is very helpful for buyers or sellers to lock-in future prices. This is what both forwards and futures allow for. This tutorial explains how they work and what the difference is between the two.

Forward contract introduction

VIDEO 3:11 minutes
Forward Contract Introduction

Futures introduction

VIDEO 3:29 minutes
Futures Introduction

Motivation for the futures exchange

VIDEO 2:41 minutes
How an exchange can benefit from trading futures and how it can use margin to mitigate its risk

Futures margin mechanics

VIDEO 3:39 minutes
Understanding the mechanics of margin for futures. Initial and maintenance margin

Verifying hedge with futures margin mechanics

VIDEO 3:48 minutes
Verifying Hedge with Futures Margin Mechanics

Futures and forward curves

VIDEO 3:19 minutes
Normal and Inverted Futures Curves

Contango from trader perspective

VIDEO 4:07 minutes
What a trader means when they say that a market is in contango

Severe contango generally bearish

VIDEO 2:28 minutes
Thinking about why a severe contango could be bearish

Backwardation bullish or bearish

VIDEO 3:26 minutes
Thinking about why backwardation in commodities markets is bullish

Futures curves II

VIDEO 3:51 minutes
Futures Curves II


VIDEO 4:11 minutes


VIDEO 3:57 minutes
Backwardation and the theory of Normal Backwardation

Contango and backwardation review

VIDEO 3:44 minutes
Review of the difference uses of the words contango, backwardation, contango theory and theory of normal backwardation

Upper bound on forward settlement price

VIDEO 4:19 minutes
Upper Bound on Forward Settlement Price

Lower bound on forward settlement price

VIDEO 4:13 minutes
Lower Bound on Forward Settlement Price

Arbitraging futures contracts II

VIDEO 4:01 minutes
Arbitraging Futures Contracts II

Futures fair value in the pre-market

VIDEO 3:09 minutes
What is the Futures Fair Value and how to traders use it as an indicator for stock price direction at market opening

Interpreting futures fair value in the premarket

VIDEO 3:38 minutes
How to interpret the market price of a futures contract relative to the fair value in the premarket