What is Futures Trading and how does it work?

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Delve into the world of futures trading with the "Futures" course, a thorough educational series offered by Interactive Brokers and CME Group. This course is designed to cater to both beginners and seasoned investors, offering a broad spectrum of knowledge about securities and commodities futures. It's an invaluable resource for anyone looking to understand and engage in futures trading.
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Belangrijkste punten van de cursus:

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• Inleiding tot Futures: Deze basismodule is perfect voor beleggers die nieuw zijn met futures en introduceert de belangrijkste concepten en belegstools binnen TWS.
• Mechanica van de futuresmarkt: Bebelegt essentiële onderwerpen zoals risico, futuresprijzen, contango en backwardation, contractspecificaties en futuresmarge.
• Futures beleggen met TWS: Toont hoe u futurescontracten beheert in TWS, inclusief het creëren van futurespreads en het omgaan met marginvereisten.
• Fundamentele analyse van futures: Verklaart het proces van het gebruik van micro- en macro-economische gegevens en industrievoorwaarden om de modelprijs van futurescontracten te bepalen.
• In-Depth Topics in Futures: The course delves into specific futures-related products, including equity index, energy, interest rate, FX, agricultural, and metal futures.
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Deelnemers aan deze cursus krijgen een uitgebreid inzicht in de beleg in futures, van de basismechanismen van de futuresmarkt tot meer geavanceerde concepten in fundamentele analyse van futures. De cursus is gestructureerd om een solide basis te bieden in futuresconcepten, aangevuld met praktische demonstraties met behulp van het TWS-platform. Of u nu begint of uw kennis van de futuresbeleg wilt verdiepen, deze cursus biedt de tools en inzichten die nodig zijn om effectief door de futuresmarkt te navigeren.

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FAQ

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1) What exactly is a futures contract and why trade it?

A futures contract is an agreement to buy or sell something (like oil, wheat, or a stock index) at a set price on a future date. People trade futures to protect against price changes, to get quick exposure to a market, or to use leverage (controlling a large position with less money up front).

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2) How are futures priced (fair value and basis)?

The price of a future starts with today’s market price and adjusts for costs (like financing or storage) and income (like dividends). The “basis” is the difference between the futures price and today’s price, and this difference disappears when the contract expires.

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3) What do contango and backwardation imply for returns?

• Contango: when futures are more expensive than today’s price. This usually hurts long-term buyers because rolling into new contracts costs more.
• Backwardation: when futures are cheaper than today’s price. This can benefit buyers because rolling into new contracts costs less.

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4) How do margin and daily P&L work in futures?

To trade futures, you only need to deposit part of the contract value (margin). Each day your profit or loss is updated based on price moves. Because of leverage, gains and losses can be much larger, and if losses are too big, you may need to add more money or your position could be closed.

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5) How do I execute and manage futures in TWS?

In TWS you can place futures trades, build spread trades, and see how much margin is needed. The platform also helps manage expiring contracts, track risks, and analyze products across markets like stocks, energy, interest rates, currencies, agriculture, and metals.

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