Introduction to Futures and Forwards
Lindsey Matthews
30 years: Risk management & derivatives trading
“Derivatives” is a catch all term for a wide range financial products. In this series, Lindsey will cover what forwards and futures are and how to price a forward trade.
“Derivatives” is a catch all term for a wide range financial products. In this series, Lindsey will cover what forwards and futures are and how to price a forward trade.
Introduction to Futures and Forwards
10 mins 53 secs
Derivatives is a catch all term for a wide range of financial products, including futures and options, interest rate swaps, oil options, FX forwards, equity swaps and credit default swaps. Forwards contracts can be used in circumstances where prices are uncertain, and thus traders lock in and hedge their risk. The calculation of the fair forward price is outlined below.
Key learning objectives:
What are forwards and futures contracts?
What is the formula for calculating the fair forward price?
What does the pricing of a 3 month forward NOT involve?
Lindsey Matthews
09:04
06:10
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