The Course

Futures, from the ground up

A free, plain-English course on futures contracts — the agreements that lock in a price today for a trade that settles later. Each lesson is short, uses worked examples, and ends with a quick knowledge check.

1. 1 What Is a Futures Contract? A binding agreement to buy or sell an asset at a set price on a set future date — an obligation, not a right.
2. 2 Long and Short Futures The two sides of every contract: going long profits when prices rise, going short profits when they fall.
3. 3 Contract Specifications Contract size, tick value, and delivery months — the standardised "spec sheet" behind every futures contract.
4. 4 Margin and Leverage Initial and maintenance margin, notional value, and why a small deposit controls a large position.
5. 5 Mark to Market and Daily Settlement How gains and losses are settled to your account every single day — and what triggers a margin call.
6. 6 Hedging with Futures How producers and buyers lock in a price to remove uncertainty — the original purpose of futures.
7. 7 Speculation and Basis Speculators, the basis between futures and spot, and how the two prices converge at expiration.
8. 8 Settlement: Physical vs Cash Delivering the actual asset versus settling in cash — and how traders roll contracts to avoid delivery.
9. 9 Futures vs Options vs Forwards Obligation versus right, and exchange-traded versus private — how the three contract types compare.
10. 10 Futures Risk and Common Mistakes Why leverage cuts both ways, the danger of overnight gaps, and the mistakes that catch beginners.