This course provides content to suit investors with different levels of knowledge about the futures market. Investors new to the world of futures trading can use this introductory course to learn key industry concepts and how to find information using the trading tools within TWS.
Mechanics of the Futures Market – Overview
Introducing the Mechanics of Futures Market course, where we’ll introduce you to some of the risks faced by investors in the futures market, how certain of those risks are mitigated, as well as the difference between spot and forward prices, and contango and backwardation. We’ll also provide you with other insights about the mechanics of trading futures, including the roles of commoditized contracts, as well as margin requirements.
A Word About Risk
Understand some of the risks inherent in futures trading, and the financial markets more broadly. Learn how futures exchanges and the CFTC help to mitigate settlement risk and provide legal safeguards, respectively.
Futures Pricing: The Basis
Understand what ‘the basis’ in the futures market represents, and what the process of arriving at this information means for producers, hedgers and speculators.
Futures Prices: Contango & Backwardation
Explanation of Futures Prices: Contango & Backwardation.
A Closer Look at Contracts
Acquire the skills to identify the components of a futures. Understand the role of a futures exchange, including the standardization of product requirements in commodities markets, and certain marketplace rules.
Understand the basics behind how and why margin requirements are calculated and posted, as well as the roles of the investor, exchange and brokerage firm in the process.
TWS Futures Contract Demo
Watch and learn how to put Futures contracts into practice.
TWS Margin for Futures
Learn where to look for margin amounts held by Interactive Brokers when you buy and sell futures contracts.
TWS Futures Roll and Expiration
Learn how to cover closing simple long or short positions as well as rolling positions from one contract month to another. This lesson will teach you how to create spreads for futures and we will cover setting up calendar spreads to trade or monitor.