15 years: Fixed income markets
A futures contracts is a specific type of contract which is standardised and traded on an exchange. Lee explains the context in which these are executed and how they are priced.
A futures contracts is a specific type of contract which is standardised and traded on an exchange. Lee explains the context in which these are executed and how they are priced.
3 mins 16 secs
Futures are financial contracts which give the buyer the obligation to buy a financial instrument at a predefined price on a set date from the contract seller, who in turn is obligated to sell the financial instrument at a said price.
Key learning objectives:
Understand how future contracts are priced
Identify the various ways futures are traded
Understand how future contracts are settled