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Forward and futures contracts
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
How an exchange can benefit from trading futures and how it can use margin to mitigate its risk
Understanding the mechanics of margin for futures. Initial and maintenance margin
Verifying Hedge with Futures Margin Mechanics
Normal and Inverted Futures Curves
What a trader means when they say that a market is in contango
Thinking about why a severe contango could be bearish
Thinking about why backwardation in commodities markets is bullish
Futures Curves II
Backwardation and the theory of Normal Backwardation
Review of the difference uses of the words contango, backwardation, contango theory and theory of normal backwardation
Upper Bound on Forward Settlement Price
Lower Bound on Forward Settlement Price
Arbitraging Futures Contracts II
What is the Futures Fair Value and how to traders use it as an indicator for stock price direction at market opening
How to interpret the market price of a futures contract relative to the fair value in the premarket