Beginner
What a futures contract commits you to
A futures position creates an obligation whose value changes with an underlying market. Begin by separating the contract from the cash deposited to support it.
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Futures Trading Guide
Understand futures contracts, read market structure and build strategies for direction, relative value and hedging. Follow ten stages from contract basics to advanced research and disciplined risk management.
Start with What a futures contract commits you to, then follow the next lesson links. Explore 40 lessons with worked examples, exercises and further reading.
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Futures Foundations · All lessons
Futures Foundations
Understand the contract, its price units and the obligations on both sides.
Beginner
Contract size ticks and notional exposure
A small price movement can create a large cash result. Contract units, tick size and the multiplier explain the difference.
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Beginner
Long and short futures profit and loss
Futures gains and losses depend on price direction, the multiplier and quantity. A short sale is not an upfront receipt of the full contract value.
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Beginner
Choosing a futures market and contract month
The most familiar underlying is not necessarily the most suitable contract. Compare size, liquidity, trading hours and settlement before choosing a market.
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