Arbitraging futures contract | Finance & Capital Markets | Khan Academy

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  • Опубліковано 21 вер 2024
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    Finance and capital markets on Khan Academy: In many commodities markets, it is very helpful for buyers or sellers to lock-in future prices. This is what both forwards and futures allow for. This tutorial explains how they work and what the difference is between the two.
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КОМЕНТАРІ • 36

  • @bachhoangson
    @bachhoangson 6 місяців тому +4

    This guy help me pass my level 1 CFA with zero initial financial knowledge.
    He saved me hundred, probably thousand of dollars for buying additional prep provider. I am living in a 3rd world country, that is year of saving.
    He saved me time, a lot.
    I am not sure you ever read this comment, but I just want you to know, you are literally a father to me, help me reborn as a better man. When I pass level 3 and land a good job, I will definitely contribute to your channel. Knowledge and education should be equal to everyone.
    Thanks you, Sal.

    • @anshc838
      @anshc838 2 місяці тому

      Was Khan Academy alone sufficient?

    • @bachhoangson
      @bachhoangson 2 місяці тому

      @@anshc838 No. But he gave you all the preresquite you gonna need

  • @collegeguy799
    @collegeguy799 Рік тому +3

    Without even going into the No-Arbitrage Forward Price concept in this video, now I get it. Thanks Khan Academy.

  • @SuperLaich
    @SuperLaich 9 років тому +8

    Khan Academy while doing this, dont we have to take into account of the margin mechanism of a future contract?like if we are the seller which agree to sell for $300, arent we losing money ($100) in the margin account to the buyers when the price goes up?

  • @jeffho6794
    @jeffho6794 3 роки тому

    I love the chuckles in the middle, is good to have some chuckles while I am studying for an exam. Thank you for that.

  • @KeiraSuttle
    @KeiraSuttle Годину тому

    Thank you so much for your hard work! 😊 I wanted to ask something unrelated: 🤔 I have these words 🤨. (behave today finger ski upon boy assault summer exhaust beauty stereo over). Not sure how to use them, would appreciate help. 🙏

  • @YanpingJiang-df8uf
    @YanpingJiang-df8uf 5 місяців тому

    thank you so much, it is very easy and understandable. But I got a question, what if the future price is smaller than spot price plus interest? How can I arbitrage under this circumstance?

  • @stanleyi101
    @stanleyi101 3 роки тому +4

    he is good at drawing with mouse

  • @karannchew2534
    @karannchew2534 3 роки тому +1

    Hi, Why is the playlist not in the right order? How can I play them in the right sequence please?

    • @wdacademia2329
      @wdacademia2329 2 роки тому

      Easiest way is to just use the Khan academy website directly.

  • @imas8232
    @imas8232 Рік тому

    It’s very clear! Thank you❤

  • @akhilchanana8824
    @akhilchanana8824 Рік тому

    Thankyou so much. This is great to learn the concept.

  • @ImranMohammedkhi
    @ImranMohammedkhi 4 роки тому +2

    What if the apples kept in cold storage for the period

  • @juules215
    @juules215 7 років тому +2

    This man is a God. Thank you so much for helping me understand the exam im about to take tomorrow

  • @yuewang5780
    @yuewang5780 9 років тому +2

    I really like the videos~~~ they are really very useful. thanks

  • @jewishunited
    @jewishunited 8 років тому +1

    thank you very easy and understandable

  • @louisedubernard1816
    @louisedubernard1816 4 роки тому

    Thank you ! It was very clear I understand now

  • @phongvo9989
    @phongvo9989 12 років тому +1

    thank for your hard works :)

  • @horizontbeskrajneinovacije6440
    @horizontbeskrajneinovacije6440 5 років тому

    Thanks

  • @arnoldprodigy
    @arnoldprodigy 13 років тому

    i love these videos i really understand the material now thanks

  • @bittersweet5872
    @bittersweet5872 6 років тому

    it's better if you show the arbitrage with two example; profits and losses.

  • @vonivanearlsambajon1001
    @vonivanearlsambajon1001 9 років тому

    I actually laughed... I heard the example was an apple. However, excellent report. I enjoyed it... Now, I can make an apple... :)

  • @robvandenbergh3285
    @robvandenbergh3285 8 років тому

    is 10% the risk free rate?

  • @aryandz1842
    @aryandz1842 12 років тому +1

    Firstly, thanks for your efforts and having the academy. It's much appreciated. However, Apples are not a great example. Grains would be better unless you own an Apple plantation, where you can delivery apples from 1 years time from today... :) But sure people will remember due to that exception...
    At the same time, this sounds like that every futures contract is an "ARBITRAGE" contract. is that so?

  • @zahradehghanitafti7125
    @zahradehghanitafti7125 4 роки тому

    Thank you very much for these useful videos, I really understand them well=))

  • @Tian-ow8ro
    @Tian-ow8ro 3 роки тому +1

    If apples never spoiled, why would anyone buy apple futures for a 50% premium? lol.

  • @stefanutoluiz
    @stefanutoluiz 6 років тому +1

    You're not guaranteed of anything. Your apples can be stolen or caught on fire, the buyer of the future contract (the exchange) might default.

  • @xila4132
    @xila4132 13 років тому

    So ,rice would've been a better example ?

  • @RP-oh9hc
    @RP-oh9hc 3 роки тому

    What if price tanks, and futures contract is worthless & settlement price for 1k lbs of apples in one year, is far under $200? This model doesn’t take into account risk of price collapse!

  • @georgemwangi2167
    @georgemwangi2167 4 місяці тому

    1,000 lbs of 1 year old apples 🤣

  • @RhettReisman
    @RhettReisman 3 роки тому +1

    Bitcoin

  • @phantomofoaktown
    @phantomofoaktown 6 років тому

    What's the deal with his obsession with apples?

    • @Nader95
      @Nader95 6 років тому

      pump and dump

  • @ysr1481
    @ysr1481 7 років тому

    Please tell me in hindi