Using the Futures Market
An Interactive Learning CDRom from Keystone Marketing Services

Learning Center


Instructional time 4-6 hours; multimedia time: 47 minute

This course looks at the practical uses of the futures market for producers and consumers. Although the perspective is not that of a speculator, this module will bring a rounded understanding of the "what" and "why" of futures markets to both speculators and hedgers.

Click here to view a sample "slide" from the CDRom




Outline, objectives & contents

  • Chapter 1
    • Learning Objectives
      • To discuss the origins of commodity futures markets
      • To discuss the specifications for futures contracts
    • Contents
      • Managing Price Risk
      • Forward Cash Contracts
      • Start of Commodity Exchanges
      • Contract Specifications
      • Summary
      • Quiz

  • Chapter 2
    • Learning Objectives
      • To explore the concepts of hedging
      • To demonstrate the three steps in hedging
    • Contents
      • Definition of Hedging
      • Futures vs. Forward Contracts
      • Establishing a Price Objective
      • Selecting a Futures Delivery Month
      • Local Expected Hedge Price
      • Short Hedging Using Hogs
      • Estimating Basis
      • Establishing a Hedge
      • Forecasting Basis Accurately
      • Summary
      • Quiz

  • Chapter 3
    • Learning Objectives
      • Discuss the impact of basis risk on hedging
      • To Discuss some of the criticisms of hedging
    • Contents
      • Examining Basis Risk
      • Coping with Basis Risk
      • Impact of Increasing Cash Prices
      • Criticism of Hedging
      • Summary
      • Quiz

  • Chapter 4
    • Learning Objectives
      • To illustrate how to use a hedge from a buyer's point of view
    • Contents
      • Long Hedging Using Corn
      • A Complete Hedge
      • To Hedge or Not to Hedge
      • Summary
      • Quiz

  • Chapter 5
    • Learning Objectives
      • To examine the role of the speculator in the futures markets
    • Contents
      • Role of the Speculator
      • Speculators Assume Price Risk
      • Summary
      • Quiz

  • Chapter 6
    • Learning Objectives
      • Discuss the role of trading range in the futures markets
      • To discuss the mechanics of margins in futures trading
      • To discuss the importance of financing in heading
    • Contents
      • Trading Ranges
      • Margins
      • Financing a Hedge

  • Conclusion
    • Summary
    • Quiz
    • Conclusion
Here's how to order ...


Check out all the courses: Speculation | Technical Analysis | Understanding Basis

[ Contents ] [ Learn to Trade ] [ Benefits ] [ How to Order ]



This educational material is provided courtesy of Keystone Marketing Services, a leader in commodity market training.
For more futures market learning opportunities, check out their interactive CDRom training courses.


Lt Crude 57.98
Nat Gas 2.967
Corn 345 2/8
Cotton #2 71.14
Gold 1294.1
Copper 3.1375
Euro 1.18380
USD Index 93.160
SP500 E-mini 2597.25
DJIA E-mini 23509
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