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Intermediate

Futures & Derivatives Explained

An introduction to derivatives and futures contracts, covering how futures are priced and the mechanics behind a futures trade. Explores common futures strategies alongside real market rules and famous blowups that show why risk management matters.

Futures ContractsFutures PricingDerivatives Risk
MODULES
5
DURATION
~2.1 hrs
TRACK
Options & Derivatives

What You'll Master

Learn what derivatives are and how futures contracts work
Understand futures pricing and common trading strategies
Study market rules and famous blowups to manage risk
Access Level
LEARNER
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Everything included
Full Text Playbooks
Actionable Exercises
Mobile Reading Mode
Lifetime Updates

Curriculum Breakdown

Chapter 1: What Are Derivatives and Why Do They Exist?

3 Lessons
▶
What Really Happens When You Trade a Futures Contract6 min
Preview
▶
Futures vs Options vs Forwards vs Swaps — The Derivatives Family5 min
▶
Who Uses Futures? — Hedgers, Speculators and Arbitrageurs6 min

Chapter 2: Futures Contract Mechanics

4 Lessons
▶
Lot Size, Tick Size and Contract Value — The Numbers You Must Know6 min
▶
Margin — SPAN, Exposure, and How Much Money You Actually Need7 min
▶
Mark-to-Market — Why Futures Are Settled Daily6 min
▶
Expiry and Rollover — How Traders Carry Positions Forward7 min

Chapter 3: Futures Pricing

3 Lessons
▶
Fair Value of a Futures Contract — Cost of Carry Model6 min
▶
Basis — The Spread Between Spot and Futures5 min
▶
Contango vs Backwardation — What the Shape of the Futures Curve Tells You6 min

Chapter 4: Using Futures — Strategies

4 Lessons
▶
Directional Trading with Nifty Futures — Long and Short7 min
▶
Hedging Your Equity Portfolio Using Nifty Futures7 min
▶
Stock Futures — When to Use Them Instead of Equity6 min
▶
Cash and Carry Arbitrage — A Risk-Free Trade?6 min

Chapter 5: Risk, Rules and Famous Blowups

6 Lessons
▶
The Real Risk of Leverage — How Futures Traders Blow Up Accounts7 min
▶
F&O Taxation in India — What SEBI and the IT Department Require6 min
▶
Famous Blowup: LTCM — When Genius Failed8 min
Preview
▶
Famous Blowup: Nick Leeson and the Fall of Barings Bank7 min
▶
Your Futures Trading Rules — A Non-Negotiable Framework6 min
▶
Where to Go from Here — Connecting Futures to Options and Portfolio Hedging5 min