Summary of What are futures? - MoneyWeek Investment Tutorials

00:00:00 - 00:20:00

The futures market is a market where buyers and sellers agree to trade an asset at a future date and at an agreed-upon price. A futures contract is an agreement between two parties to buy or sell an asset at a future date at a specific price. Futures contracts can be used for both speculative and practical purposes.

• 00:00:00 In this video, MoneyWeek introduces the futures market, which is a market where buyers and sellers agree to trade an asset at a future date and at an agreed-upon price. A forward contract is an example of a futures contract.
• 00:05:00 In futures markets, two parties agree to trade an item - in this case, aluminum - at a later date, with the understanding that the current market price will apply. If either party wants out of the contract, they can do so by negotiating a new contract with the other party. If both parties want out of the contract, the original contract is cancelled and the aluminum is returned to its original owner.
• 00:10:00 In a futures market, two or more parties agree to trade an asset or commodity at a predetermined future date and price. If one party fails to honor their contract, the other party can sue.
• 00:15:00 Futures contracts are agreements between buyers and sellers to buy or sell an asset at a future date at a specific price. When a contract is closed, the buyer and seller are either both winners or both losers. By trading futures contracts, investors can participate in the price movement of an asset without actually owning the asset.
• 00:20:00 Futures contracts allow for the purchase and sale of goods at a future date, and can be used for both speculative and practical purposes.