What are futures? - MoneyWeek Investment Tutorials

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  • Опубліковано 10 тра 2024
  • What are futures? Tim Bennett explains the key features and basic principles of futures, which, alongside swaps, options and covered warrants, make up the derivatives market.
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КОМЕНТАРІ • 723

  • @soumya508
    @soumya508 2 роки тому +41

    This guy has delivered in 20 minutes what took me 1 month to understand as an Optional Paper in my MBA Finance degree. Really well articulated and comprehended for a general audience!!

  • @metalichasan
    @metalichasan 5 років тому +160

    Forwards and futures can't be explained any more simply in such a short time. Thanks a ton for the video.

    • @jbullionaire2749
      @jbullionaire2749 5 років тому +6

      A ton of aluminium? $2500 for you my friend

    • @coolkidbmx6851
      @coolkidbmx6851 4 роки тому +2

      If this is simple then I don't know..i'm so lost. Why would anyone want to transact like this? Feels like A WHOLE LOT of pissing into the wind by all parties...

    • @Jobrave
      @Jobrave 2 роки тому

      Really? I did not think that this was that great a job.
      Eg. Why choose "producer" and "manufacturer" when "buyer" and "seller" could suffice? Produce and manufacture are quite synonymous, and now you have to remember - who is buying who is selling?

  • @rodneyebert
    @rodneyebert Рік тому +477

    Great video. One important thing when it comes to crypto is to trade and not hope on price rising and falling

    • @jacksonrodrigez4310
      @jacksonrodrigez4310 Рік тому

      Crypto is the future, investing in it now will be the wisest thing to do especially if you are been guided by a professional. I believe the benefits of a successful trade comes from an expert.

    • @jacksonrodrigez4310
      @jacksonrodrigez4310 Рік тому

      That is why i made huge profit with the help of Mr Sean Travis Anthony, he's a genius and that's why i always advice novice to trade with him.

    • @nicolaspedro644
      @nicolaspedro644 Рік тому +1

      Started my trade in Crypto as a newbie, with Zero knowledge of what i am doing but meeting Sean Travis Anthony has been Amazing and a blessing to me

    • @briansteven636
      @briansteven636 Рік тому

      @@jacksonrodrigez4310 There is an opportunity for newbies and some old holders to capitalize on. it"s quite a shame people can't see this. Trading is everything right now

    • @user-rq4od4jb1m
      @user-rq4od4jb1m Рік тому

      I've stopped worrying about the fall in the price of Bitcoin since I began using Sean strategy, and I've made gains every day even when the price is down.

  • @xXalaXx7
    @xXalaXx7 8 років тому +382

    God bless this guy.

    • @felipepwns
      @felipepwns 5 років тому +19

      Can we start a donation page for this man...

    • @kgantshomonaledi6235
      @kgantshomonaledi6235 4 роки тому +8

      Literally

    • @1GearG0
      @1GearG0 4 роки тому +4

      Yup

    • @atdb209Ye
      @atdb209Ye 4 роки тому +7

      I feel that I owe him tuition... he deserves it.

    • @chobelawan927
      @chobelawan927 3 роки тому +1

      I don't think there is a limit to the potential profits in the market and it all depends on your capital. I trade FX with SQB_AMAC which is the best strategy ever developed and I started with a $ 5,000 account and was able to raise more than $ 380,000 in 6 months. Just get the SQB-AMAC strategy and good capital and the stars could be yours.

  • @SathienDaerka
    @SathienDaerka 4 роки тому +61

    If I pass my Masters in Finance, I'm dedicating it to this guy.

    • @samuelspencer5047
      @samuelspencer5047 3 роки тому +1

      How is your progress in your masters or has that been halted because of covid. Please look into a channel by a finance professor/asset manager called Patrick Boyle. You will learn a lot from his channel. It is corporate finance he discusses and in great detail.

  • @cristianmitran8620
    @cristianmitran8620 4 роки тому +12

    This is one of the most comprehensable financial videos out on the internet. I absolutely adore it. Very simplified explanation. Thank you very much!

  • @MoneyWeekVideos
    @MoneyWeekVideos  12 років тому +41

    Remember that the moment you sign a futures contract to buy or sell an asset at a particular price you are locked in to those terms no matter what the market price then does. The only way out of a contract as the buyer is to close your position and make the relevant payment to the seller. The advantage if a futures contract is price certainty but this is also its drawback if you can buy cheaper later on the open market. Tim.

    • @giannispets
      @giannispets 2 роки тому

      One of my question is how futures are connected with the producer of the real underlying asset... lets say someone shorts the market and drives the price down a miner for example might not willing to sell at this price because at this price he might be unprofitable

    • @TkankaFotowoltaiczna
      @TkankaFotowoltaiczna 2 роки тому

      @@giannispets did you find the answer? I like how in the video was mentioned many times that this is pure gambling. But does this gambling impacting real market prices? If yes - well, in my opinion we have a problem.

    • @dragonchr15
      @dragonchr15 Рік тому

      @@giannispets that's the point of a futures contract...it is an OBLIGATION to buy or sell. The miner has no choice but to sell his products to the bearer of the contract for the agreed upon price. The miner can be sued for not executing an agreed upon contract by two parties.
      Another possibility is if the party that the miner entered into the contract with, maybe an energy company, sells the futures contract to a trader via a broker, the trader, who probably has no use for the miner's products (let's say coal), will just accept a cash payout from the miner for the difference.
      ie, if the contract was to sell 100 lumps of coal for $10 (made up commodity, lol), then the miner has to provide the 100 lumps of coal for $10 ($1,000 total) to the energy company. If the coal was trading for $15 a lump on the open market, the energy company wins and the coal miner loses.
      If the price of coal plummets to $5, maybe due to political issues, the energy company may buy the coal for $5 on the open market, and when the time comes to settle the contract with the miner, it might pay $500 cash to the miner ($1,000 (contract) - $500 (market)).
      On the flip side, if the price of coal rises to $15 because of opposite political issues, the miner might just sell his 100 lumps of coal on the open market and pay the energy company $500 ($1,500 (market) - $1,000 (contract)) to reimburse them for the extra they had to pay.

  • @NicholasFainlight
    @NicholasFainlight 8 років тому +10

    I'm currently a student a long way from investing in futures myself, but I found this video to be very insightful. Thanks!

  • @HenryEnglander
    @HenryEnglander 11 років тому +6

    Love your videos, Tim. I've nearly watched them all! Especially liked this one where I suddenly got a 'Eureka' moment about how futures (and derivatives) work. Thank you and keep them coming!

  • @amberyang3489
    @amberyang3489 8 років тому +7

    This video is amazing! I can't follow my teacher since we start tallying derivatives, but now it's much clear to me.

  • @datchodidaopho
    @datchodidaopho 5 років тому +3

    I took a Finance class and your video helps me understand the Future contract much better. Thank you, great tutorial

  • @Peter-st6cv
    @Peter-st6cv 5 років тому +2

    The way you breakdown material is amazing. Thanks for breaking it down

  • @emphase6
    @emphase6 4 роки тому

    Watched many videos and read articles trying to understand this futures, This video made it click, thank you for that. Brilliant.

  • @arieftaufan8566
    @arieftaufan8566 4 роки тому +2

    No one in my class explained like him, thanks man for sharing

  • @neuverschuldung
    @neuverschuldung 8 років тому +147

    the way you explain the futures market gives the impression that it is just a big casino for speculators

    • @keithcheokkeyang
      @keithcheokkeyang 8 років тому +34

      +Alexander Hecking Derivatives mkts are rather short term, since its pretty hard to predict short term price changes. its pretty much gambling.

    • @rezivillehulgado2497
      @rezivillehulgado2497 6 років тому

      Winner of a video, I've been looking for "sideways forex trends forecast" for a while now, and I think this has helped. You ever tried - Piyatthew Forexify Trends - (just google it ) ? Ive heard some awesome things about it and my buddy got excellent results with it.

    • @luisdiegocr
      @luisdiegocr 6 років тому +7

      yes, and the casino here is the future exchange, no matter what happen, he/she gets his/her commission

    • @pennycarlson1943
      @pennycarlson1943 6 років тому +14

      As far as risk goes, speculating in futures is akin to gambling. however; futures markets also provide a way for those involved in production of commodities to lock in a price (hedge). The big difference between speculation and gambling is that gambling creates risk. With speculation, the risk of price changes already exists. Futures markets are a way for the risk to be transferred from the hedger, who wants to lock in a price so that they can intelligently plan for production, to the speculator, who wants to accept the risk and hopes to profit from accepting that risk.

    • @ThePorschefan
      @ThePorschefan 6 років тому +12

      Is not gambbling, the market reacts to simple supply, demand and scarcity and base on probabilities and statistics you say "There's gonna be chicken scarcity so prices may go up, i should buy chicken futures contracts to fix a price before it goes up and so if prices rise, i would have my chicken at a lower fixed price not afected by current inflation"
      Its hedging against risk, not gambbling

  • @seecharan
    @seecharan 10 років тому +12

    oh yes time is money, and your short video has saved me from the long make it last 3 hours coz I'm on the clock lecture from my economics prof... Thanks

  • @hamzatamne2983
    @hamzatamne2983 8 років тому +1

    Perfect way of conveying about Derivatives...very helpful...God Bless You

  • @INvestYOU
    @INvestYOU 7 років тому +29

    awesome explanation thanks a lot

  • @neil5611
    @neil5611 4 роки тому

    For starters, this info is gold. So many light bulbs turned on in my head throughout the lesson. This video is phenomenal. I almost gave up on futures until this video. Thank you.

  • @luiscanamarvega
    @luiscanamarvega 9 років тому +7

    This is absolutely fantastic. Thank you!

  • @erycklelann1907
    @erycklelann1907 4 роки тому

    This is by Far the clearest Future explication i've ever Seen.
    Thanks you a lot

  • @shielajoynebato4191
    @shielajoynebato4191 2 роки тому +2

    Thank you for this, Sir. I finally understand this matter more clear than my 4 years of studying.

  • @reddiamondxiv
    @reddiamondxiv 6 років тому +1

    Makes it simple and easy to absorb. Wish their were more recent videos. 👍🏽

  • @uksoontobeinaus706
    @uksoontobeinaus706 9 років тому +3

    You're so awesome Tim, thank you so much for teaching

  • @marmanlive
    @marmanlive 7 років тому +5

    Brilliantly and smoothly explained... thanks a lot!

    • @hagingimm247
      @hagingimm247 7 років тому

      if u need real trader life. find "s7futures" on youtube

  • @leeshaoloung7302
    @leeshaoloung7302 3 роки тому

    The best explanation free available for anyone on how futures work.

  • @salmandeveloper
    @salmandeveloper 8 років тому +12

    Good work Tim, "It is not just the head, the whole beast comes with it" lol...

  • @glpify
    @glpify 7 років тому +1

    God bless you Tim, amazingly helpful for people wanting to get into this industry

  • @EmilyAngela412
    @EmilyAngela412 10 років тому +3

    I finally get it! thank you for your videos.

  • @DanielPeraalta
    @DanielPeraalta 5 років тому

    You just answered every and each of my doubts about that matter. What couldn’t be solved by other few videos! thank you so much!

  • @coffeeforlife4104
    @coffeeforlife4104 5 років тому

    Thank you Mr Tim, you explain the concept better than my lecturer :)

  • @richashankar7732
    @richashankar7732 4 роки тому +1

    This is my favourite UA-cam series :)

  • @reddiamondxiv
    @reddiamondxiv 6 років тому +1

    I love his explanation. Very detailed and has visuals.

  • @clarencelee4911
    @clarencelee4911 8 років тому

    Best explanation I can find on the internet for futures

  • @johnholme783
    @johnholme783 2 роки тому

    Both comprehensive and simple to understand. Well done!

  • @MichaelGotiashvili
    @MichaelGotiashvili 6 років тому

    #1 advantage of these videos is that the host is not some Indus guy with a terrible pronunciation and it's a pleasure to listen to him!

  • @zhubarb
    @zhubarb 11 років тому

    Tim, thank you. You are a gifted teacher.

  • @thepassionatesoul1802
    @thepassionatesoul1802 10 років тому +12

    I hope you were my tutor! it's amazing how I understand your explanation so easy!

  • @IPSINGHSANDHUU
    @IPSINGHSANDHUU 10 років тому +3

    Thanks for your help. It's really helpful

  • @joannamrozek9884
    @joannamrozek9884 5 років тому +2

    Great videos. Love the way you explain compkex financial concepts with real life examples.

  • @dzx3934
    @dzx3934 5 років тому

    Thank you so much! You succinctly explained in 20 mins what my lecture notes takes hours of reading to understand..

  • @Bryce25400
    @Bryce25400 5 років тому +1

    Thank you so much for this tutorial, this was much simpler and way easy to understand

  • @gianlucascacco6954
    @gianlucascacco6954 9 років тому

    Really well done, I am an MBA student and I enjoyed watch this video.

  • @eaglenavaneeth
    @eaglenavaneeth 8 років тому

    Thanks Man, finally understood Futures Market . Very helpful

  • @virutronresearch5845
    @virutronresearch5845 4 роки тому

    While others try to impress us with financial gobbledygook, you nail it with easy to understand example. Thank you very much, Sir!

  • @larryporter3744
    @larryporter3744 9 років тому

    You primarily carry on making enlightening videos. You can keep them coming back!

  • @mikhailtagallie8274
    @mikhailtagallie8274 8 років тому +1

    thank you very much. I never really understood futures until this video.

  • @melvinleong3731
    @melvinleong3731 7 років тому

    dude.. i really was struggling to watch this.. i hung in there and relised that your amazing .. thanks for sharing your brain.

  • @sagarsingh1234
    @sagarsingh1234 12 років тому +1

    Amazing video!!! Very clear explanation. You are a very good teacher! Keep up the good work Tim!!!

  • @JanKnettig
    @JanKnettig 8 років тому +1

    Nicely explained. Finally starting to understand it.

  • @omololaolowu3387
    @omololaolowu3387 8 років тому +12

    Thank you so much for this!! You just cleared up the fog in my brain on this topic. lol

  • @garimasingh4426
    @garimasingh4426 2 роки тому

    This is the best explanation of the future markets. Thank you

  • @nihalvlog7606
    @nihalvlog7606 7 років тому

    The examples which you share are just great and simple to understand

  • @anirudhb8927
    @anirudhb8927 6 років тому +1

    Beautifully explained!..kudos!

  • @shannenss
    @shannenss 11 років тому

    I like the way you explained & illustrate your point, easy to understand. Thank you for making this video.

  • @manibabai2115
    @manibabai2115 5 років тому

    Perfect explanation with a very interesting Example at the end ! thank you so much !

  • @datchodidaopho
    @datchodidaopho 6 років тому

    Very helpful video, thank you so much. I have been trying to look for a detail explanation for so long

  • @JWIN747
    @JWIN747 11 років тому

    This is a very nice explanation of Futures. Thanks so much!!

  • @NateHeroic
    @NateHeroic Місяць тому

    The only content I have found that actually explains futures.

  • @LimitUpOnlineGuy
    @LimitUpOnlineGuy 7 років тому +1

    Great instructional! I was going to add a similar "mechanics of futures" lesson to my futures trading tutorial videos, but I think I'm going to opt to set a link back to this page. No need for me to spend time attempting to do what Mr. Bennett has already done impeccably!

  • @Dayta
    @Dayta 2 роки тому

    so this is 2021 now and after watching alot of videos this was the first one where i thought ... nice finaly someone who is actualy explaining it .. great work ! thanks for the video

  • @moonflower_1408
    @moonflower_1408 3 роки тому

    Thankfully I found his vids before my upcoming first midterm exams. Thank you so much sir 😭😭😭..God bless you.

  • @bojandimitrijevic6659
    @bojandimitrijevic6659 8 років тому +2

    Very good. Bright explanation!

  • @joshmcormican
    @joshmcormican 2 роки тому

    It’s all common sense when it comes down to it and doesn’t have to be made complicated. Great that there are people like this guy.

  • @marcosibuki7464
    @marcosibuki7464 3 роки тому

    In the entire internet, this is the single only one BEST EXPLANATION 👏🏼👏🏼👏🏼👏🏼👏🏼👏🏼👏🏼👏🏼👏🏼

  • @zxstratoblack
    @zxstratoblack 5 років тому

    Brilliant. What amazes me the most is that what this gentleman says is perfectly understandable even by an Italian guy.

  • @shivangigarg1924
    @shivangigarg1924 2 місяці тому

    Did someone just explained me Futures, Forwards and Novation that quick and easy! Wish I would have come across this gentleman's videos earlier.

  • @awsomenumberone
    @awsomenumberone 10 років тому

    I mostly understand this now! Thank you.

  • @paulrony2752
    @paulrony2752 8 років тому +1

    your videos are really very helpful in understanding investment concepts...very easy to follow as its explained in simple words...just simply brilliant..Hats off to u sir:)

  • @bobbymorrie6331
    @bobbymorrie6331 5 років тому +1

    Very helpful explanation, thanks so much!!!

  • @abhilash8973
    @abhilash8973 5 років тому

    Great Explanation
    Loved the cattle head example.. (chuckles)

  • @underoath257
    @underoath257 2 роки тому +1

    This is what I call a high quality education

  • @bhaskarjoshi17
    @bhaskarjoshi17 10 років тому +1

    commenting on utube video for the first time coz its so good :)

  • @AdwaitDahale
    @AdwaitDahale 11 років тому

    This was very helpful! Thanks a lot!

  • @rajulingampally9692
    @rajulingampally9692 9 років тому

    Very neatly and simple explaination,keep up the good work.

  • @sweeter62
    @sweeter62 4 роки тому

    Brilliant explanation on this topic. It was difficult for me to find a video in youtube explaining how to trade futures market.

  • @kytv9000
    @kytv9000 6 років тому

    Thank you for the helpful video. The end also cleared my question about what happens in the delivery day.

  • @arashyoo12345
    @arashyoo12345 7 років тому

    last 30 seconds answered a question i've had for very long time.

  • @ceazykid
    @ceazykid 11 років тому

    Great video. thanks for making futures a lot clearer to me

  • @Boogey_Man_123
    @Boogey_Man_123 3 роки тому

    your videos are amazing! learning so much!

  • @paulthomas3362
    @paulthomas3362 3 місяці тому

    What a brilliant overview. I train people in my workplace on derivatives and this is a real cool example for someone leading for the first time

  • @Maffoo
    @Maffoo 7 років тому

    Very well explained, Tim. Cheersies

  • @drukpakunley5659
    @drukpakunley5659 5 років тому

    You Explanations are easy to Understand.... by chance... here I Am watching this same VIDEO AGAIN... .. And I Have learn ... More about how fluid the market is... and How it takes someONE like you to help the STUDENT connect all the DOTS.... I Thank you ... GREAT FULL I AM

  • @rajaiyer79
    @rajaiyer79 12 років тому

    What a great teacher! Thanks!

  • @achrafkhallouli5378
    @achrafkhallouli5378 4 роки тому

    Such a great professor!

  • @hajamisbah
    @hajamisbah 7 років тому

    It helped me lot in my interview

  • @kyleong0622
    @kyleong0622 11 років тому +2

    Thank you so much for this video MoneyWeekVideos. It really taught me a big chunk about what are derivatives really all about. I have yet to see your other videos regarding the other types of derivates and I can't wait to view them. However, I do have one question. It might seem quite odd but, what are the differences between trading derivatives and trading normal securities (such as bonds or stocks) other than the association of interests and dividends to bonds and stocks respectively?

  • @ashwinidivate..1881
    @ashwinidivate..1881 8 років тому

    very clean and simplified teaching . i liked it

  • @rhonzfitz621
    @rhonzfitz621 Рік тому

    This was an EXCELLENT video. 👍🏽

  • @maralghawsi
    @maralghawsi 11 років тому

    Thanks a lot - you explanations were very clear and easy to understand.

  • @MoneyWeekVideos
    @MoneyWeekVideos  12 років тому +1

    richsmarkid - you could try my video "what do investment banks actually do" for some answers although I may need to shoot another video specifically on derivatives at some point. Watch this space!

  • @reecemccullough4829
    @reecemccullough4829 4 роки тому

    Great video, thanks for the clarity. Will be going through all your content. 8 years ago. I wonder what youre up to today!

  • @nitinnair2217
    @nitinnair2217 8 років тому

    wonderfully explained!! thanks mate!!!

  • @warren2398
    @warren2398 2 роки тому

    I must admit, i have watch like 2
    videos before this so I may have already been getting it. But most of my questions during the video HE ANSWERED.
    This was pretty damn thorough.

  • @Broughtvulture
    @Broughtvulture 2 роки тому

    Great explanation, I liked the charts and examples you used to connect the ideas.

  • @Ch3Weh
    @Ch3Weh 10 років тому

    Great video and brilliant explanation method. Thank you!

  • @xtramiles100
    @xtramiles100 6 років тому

    Great video and very understandable with the A, B and C illustration.

  • @harrison1999
    @harrison1999 9 років тому +1

    This is most helpful video about futures I've found yet. I even enjoyed the stick figures.
    Thank you.

  • @sterdel1982
    @sterdel1982 6 років тому

    the best teacher.so easy to understand

  • @penbly
    @penbly 4 роки тому

    Best Futures lecture EVERRRR