Futures
21 lessons in this track so far, in the order we suggest reading them.
Futures Basics
IntermediateHow Futures Contracts WorkA futures contract is a standardised agreement to buy or sell an asset at a set price on a future date. Learn how futures trade, margin, daily settlement and expiry.IntermediateContract SpecificationsContract specifications define a futures contract's size, tick, months, hours and settlement. Learn every field, with examples for E-mini S&P, crude oil and gold.IntermediateTick Size and Tick ValueTick size is a future's smallest price move; tick value is what it is worth per contract. Learn to calculate P&L, risk per trade and position size from ticks.IntermediateContract Months and ExpirationFutures trade in specific contract months with letter codes and fixed expiry rules. Learn month codes, the front month, quarterly cycles and how expiry works.IntermediateFutures Margin: Initial and MaintenanceFutures margin is a performance bond, not a loan. Learn initial and maintenance margin, day trading margin, margin calls, SPAN and how to avoid forced liquidation.IntermediateForwards vs FuturesForwards are private, customised contracts; futures are standardised and exchange traded. Compare their structure, settlement, counterparty risk and uses.IntermediateStocks vs FuturesCompare trading stocks and futures on leverage, costs, hours, shorting, taxes, expiry and risk, with worked numbers, to choose the right market for your plan.IntermediateSpot vs FuturesSpot is the price for immediate delivery; futures price delivery later. Learn the cost of carry formula, why futures trade above or below spot and convergence.
Curves and Rolls
IntermediateContangoContango is when later futures trade above nearer ones or spot. Learn why it happens, how it erodes long commodity and VIX funds, and how traders use it.IntermediateBackwardationBackwardation is when later futures trade below nearer ones or spot. Learn the causes, convenience yield, positive roll yield and what it signals about supply.IntermediateRolling Futures ContractsRolling moves a futures position from an expiring contract to a later one. Learn when to roll, how to use calendar spreads, roll costs and common roll schedules.IntermediateRoll YieldRoll yield is the return from futures converging toward spot as they near expiry. Learn how contango and backwardation drive it and how to estimate it.IntermediateBasis and Basis TradingBasis is the gap between a spot price and a futures price. Learn how hedgers manage basis risk, how basis trades work and the Treasury basis trade.IntermediateContinuous Futures and Back-AdjustmentContinuous futures stitch expiring contracts into one long price series. Learn back adjustment, ratio adjustment, roll rules and why they matter for backtests.
Delivery
AdvancedPhysical Delivery vs Cash SettlementPhysically settled futures end with the actual asset changing hands. Learn the delivery process, who delivers, grades and locations, and how speculators avoid it.AdvancedFirst Notice Day and Last Trading DayFirst notice day is when sellers can start delivering on physically settled futures. Learn what it means, how it differs from last trading day and how to plan.AdvancedCash-and-Carry ArbitrageCash and carry arbitrage buys an asset and sells its futures when futures are rich versus carry costs. Learn the formula, gold, index and crypto examples, and risks.
Futures Spreads
AdvancedFutures Spreads ExplainedFutures spreads buy one contract and sell a related one. Learn calendar, inter market and inter commodity spreads, margin benefits, quoting and worked examples.AdvancedCalendar Spreads in FuturesA futures calendar spread buys one contract month and sells another. Learn bull and bear spreads, what moves them, seasonality and a worked crude oil example.AdvancedCrack SpreadsThe crack spread measures the margin between crude oil and refined products like gasoline and diesel. Learn the 3:2:1 spread, how to calculate it and who trades it.AdvancedCrush SpreadsThe soybean crush spread measures the margin between soybeans and the meal and oil made from them. Learn the calculation, board crush, reverse crush and drivers.