Level: Beginner

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.

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.

Lesson: #2

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.

Understand what ‘the basis’ in the futures market represents, and what the process of arriving at this information means for producers, hedgers and speculators.

Explanation of Futures Prices: Contango & Backwardation.

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.

Lesson: #6

Futures Margin

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.

Watch and learn how to put Futures contracts into practice.

Learn where to look for margin amounts held by Interactive Brokers when you buy and sell futures contracts.

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.