Level: Beginner

Event Contracts allow investors to trade the outcome of certain futures markets using short-term, limited risk contracts offered by CME Group, including underlying equity index, currency, energy and metals contracts. Interactive Brokers enables trading of such Event Contracts using its EventTrader platform.

Contributed By: CME Group

The anatomy of an Event Contract and how key contracts can be used to position for potentially profitable outcomes.

This lesson explains pricing and purchase of Event Contracts at a price, and how the profit/loss can be viewed.

Not all Event Contracts will be profitable. This lesson explains the potential downside risk of a losing position.

Suppose one morning that an investor has a hunch about the price of gold. He suspects its price will close the day sharply higher than its current trading price. The investor can now buy a short-term Event Contract at a fixed cost that would provide a known payout should his view turn out to be … Continue reading Trading Event Contracts Using EventTrader