Futures Videos

The speaker explains the difference between spot and swap markets.  He explains that the spot market settles transactions "on the spot" or immediately.  Delivery of the product would be within 2 business days.  Conversely, the SWAP transaction is carried out by the broker and is only executed if the open position remains open the next trading day.  In the forex market, interest is paid, or owed for holding a currency pair and depends on which currency was bought or sold in the pair.  Remember, each currency has an interest rate associated with them. 

The speaker talks about the discrepancies in the spot price and the market price of silver.  He mentions that the market price is driven by supply and demand in the physical market while the spot price is set in the paper futures market.  The paper market can be manipulated by the government, the market price cannot.

The speaker discusses margin requirements in the futures market.  He discusses the key facts of margin, leverage & abusing leverage, establishing rules for yourself, and giving yourself a little room when trading in the highly volatile futures market.