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A structured trading curriculum across stocks,
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  • 08Build Your Trading System

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Home>Courses>What is Trading?>Lesson 5 of 8

Futures basics

Contracts to buy or sell an asset at a set price on a future date.

What is Trading?·Lesson 5 of 8

All lessons

By the end of this lesson you'll be able to:

  • 01Define a futures contract
  • 02Explain leverage and expiry in futures
  • 03Describe who uses futures and why
1

Step 1 · Read the guide

Read the guide first

Everything the quiz asks is covered in the linked guide. Read it, then answer the questions below.

What Is Futures Trading? A Beginner's Guide
Key terms
FuturesLeverageMarginOpen Interest

Step 2 · Take the quiz

Quick check

10 questions

Answer all 10, then check. Wrong answers show a hint and a link back to the guide.

  1. Question 01

    What is a futures contract an agreement to do?

  2. Question 02

    What are futures commonly used to do?

  3. Question 03

    What does futures trading typically involve?

  4. Question 04

    What does every futures contract have?

  5. Question 05

    A farmer locks in a selling price for a future harvest using futures. What is this?

  6. Question 06

    Because futures are leveraged, what can a small adverse move do?

  7. Question 07

    Futures let you profit when prices do what?

  8. Question 08

    What is the deposit required to hold a futures position called?

  9. Question 09

    Compared with buying the asset outright, what do futures require?

  10. Question 10

    Why does a speculator mainly trade futures?

Answered 0 of 10 · pass 70% (7/10) to complete

What is Trading?5 of 8
  1. Trading, explained
  2. How the stock market works
  3. How stocks actually work
  4. Intro to forex
  5. →Futures basics
  6. CFDs and derivatives
  7. Options basics
  8. Bull and bear markets
  9. ⚑Final Assessment· 20 Q