Level 1 of 6

Runner: What Are Futures

13 lessons. 0 of 13 published so far; the rest are being written.

1. 1What is a futures contract?Verified

   An agreement to buy or sell at a set price on a future date; the farmer-and-baker origin story

2. 2Hedgers vs. speculatorsVerified

   Who uses futures and why, and which one the student will be

3. 3The exchangeVerified

   CME Group, Globex, and how the clearing house guarantees every trade

4. 4Stock index futuresVerified

   What ES (S&P 500) and NQ (Nasdaq-100) track

5. 5MicrosVerified

   MES and MNQ at one-tenth the size, and why beginners start there

6. 6Ticks and pointsVerified

   0.25 ticks; ES $12.50, NQ $5.00, MES $1.25, MNQ $0.50 per tick

7. 7Notional value and leverageVerified

   How a small account controls a large position, with example math

8. 8MarginVerified

   Initial, maintenance, and day-trade margin; margin calls

9. 9Contract months and symbolsVerified

   H, M, U, Z cycle; reading NQZ6; expiration, rollover, cash settlement

10. 10Trading hoursVerified

    Globex Sunday-Friday with a 4-5 pm CT break; RTH 8:30 am-3:00 pm CT

11. 11Long and shortVerified

    Making money either direction; shorting is as simple as buying

12. 12Daily settlementVerified

    Mark-to-market and how P&L hits the account each day

13. 13Who regulates futuresVerified

    The CFTC and NFA; sets up the Broker track