Futures Trading Essentials

Lesson 1:   Definition of a Futures Contract
Lesson 2:   Contract Specifications
Lesson 3:   Contract Trading Codes
Lesson 4:   Futures Expiration & Settlement
Lesson 5:   Understanding Tick Movements
Lesson 6:   Price Limits & Price Banding
Lesson 7:   Contract Notional Value
Lesson 8:   Mark-to-Market
Lesson 9:   Margin – Know What’s Needed
Lesson 10:   Futures Expiration and Contract Roll
Lesson 11:   Price Discovery
Lesson 12:   Calculating Profit or Loss
Lesson 13:   The Role of Speculators
Lesson 14:   The Role of Hedgers
Lesson 15:   History of Futures Exchanges
Lesson 16:   Futures Contracts vs. Forwards
Lesson 17:   Trading Volume
Lesson 18:   Open Interest

Learn what a futures contract really is—how it works, why it’s used, and what makes it different from other types of financial agreements. This lesson lays the foundation for your journey into futures trading.

Explore the key elements that define a futures contract, from contract size and tick value to expiration dates. Knowing the specifications helps you understand exactly what you’re trading.

Futures symbols can look like a secret language. In this lesson, you’ll decode the format and meaning of these trading codes so you can confidently identify contracts on any platform.

Discover how and when futures contracts settle—and why expiration dates matter. This lesson explains cash vs. physical settlement and how to plan your trades accordingly.

Ticks are the smallest price movements in futures. This lesson breaks down how they work, what they’re worth, and how they impact your profits and losses.

Futures markets are protected by daily price limits. Learn how these limits are set, what happens when they’re hit, and how price banding keeps volatility in check.

Understand how to calculate the total value of a futures position—even though you’re only putting up a fraction as margin. This is a must-know for risk management.

Each trading day brings gains or losses. Learn how your account is updated daily through mark-to-market accounting and why this process is core to futures trading.

Before you trade, you need to know how much money is required to open and maintain a position. This lesson covers initial and maintenance margin, margin calls, and leverage.

What do you do when a contract nears expiration? Learn how traders “roll” contracts to the next month to maintain exposure—and what that means for your strategy.

Futures markets play a key role in determining fair market prices. This lesson dives into how futures contribute to global price discovery across commodities, currencies, and more.

Ready to do the math? This lesson walks you through how to calculate your profit or loss based on tick size, contract specifications, and price movement.

Speculators provide liquidity and take on risk. Discover how they drive market activity—and why they’re an essential part of healthy futures markets.

Hedgers use futures to protect against price swings. In this lesson, you’ll see how farmers, manufacturers, and institutions use futures to lock in prices and reduce risk.

Take a quick trip back in time to see how grain trading in the Midwest gave birth to the futures markets we know today—and how those roots still influence trading today.

Not all future-settling contracts are the same. Learn the key differences between standardized futures and private forward contracts, including risk, flexibility, and liquidity.

Volume tells the story of how active a contract is. This lesson explains why volume matters for liquidity, momentum, and market sentiment.

Open interest tracks the total number of outstanding contracts. Learn how to use it to gauge market strength, confirm trends, and spot potential reversals.