Futures Videos

The speaker discusses the efficiency of the futures market.  He first reviews the disadvantages of the forward contract and then explains how futures exchanges streamline transaction processing through keeping settlement in one central counterpary, bringing transparency and liquid

The speaker goes into the main purpose of a futures contract, hedging and mitigating price risk.  He suggests that traders will also engage in futures trading for the purposes of speculation.

In part 1, the speaker covers the history of the futures exchange and discusses why it was created.  He discusses the issues of the foward agreement and how the futures exchange streamlined many of the problems associated with forwards.

The speaker reviews a basic concept of a futures contract.  As opposed to stocks, futures contracts have expiration dates and the speaker discusses the ramifications of holding a position when the contract expires.

Many traders review their history in the trading pits on the floor of the exchange.  They recall the physicality of the trading pits in the CBOE and some of their other experiences with the open outcry system of placing orders.

The speaker continues his overview of the e-mini futures contract in this part 2.  He goes into some trading trading strategies that he uses to trade the emini.  He talks through the embedded stochastic and teaches the viewer how to read a bull

The speaker provides an overview of the S&P E-mini futures contract, also known as ES.  In this part 1, he discusses how to value a contract of the S&P emini, the value of 1 tick, mentions no pattern day trader rule, and discusses many more basic rules of the emini.  This trader prefers trading only the larger

The speaker provides an example of how to use stock index futures to hedge the risk in an equity portfolio.  He talks through managing the beta, or sensitivity to risk, through backing into the number of futures contract

The speaker provides a detailed overview of the price movements of futures contracts.  These concepts are known as contango and backwardation; he further goes on to cover Normal Contango and Normal Backwardation.  He also discusses how different commodities have different seasonality which can result in a backwardation

This video discusses how a company can use commodity futures to hedge their exposure to rising costs of the commodity.  The speaker uses copper futures as an example and does a comparison between a hedged and unhedged position

The speaker discusses the crude oil crack spread and explains how a petroleum refiner will use the crack spread to lock in the cost of oil and output prices.  The crack spread will involve buying the crude oil futures and shorting the natural gas and/or heating oil futures.  Traders have different ratios of buying an