Futures Market Explained
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- Опубликовано: 24 май 2016
- Farmers use various tools to control the many risks in agriculture. Watching the weather influences when they plant or harvest. Buying crop insurance and selecting farm bill safety net programs helps protect them from crop devastation. But they can also manage some of the threat posed by volatile market prices by participating in the futures market. Farmers can get a feel for how that works if they play Commodity Classic, an online teaching tool that uses fictitious bushels of grain in a fake futures market.
But here at Harvest Public Media, we wanted to better understand how the futures market helps both producers and users of a major commodity, such as corn. And how the benefits trickle down to regular food consumers. Here’s what we learned.
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This is how finance should be explained. Like to a child, and then that child goes and explores the subject because now the basic understanding is strong, making it easier to understand the complexity of it all.
I learn finance, stock, crypto, trading and investing... and found the best explanation about futures market in a agriculture youtube channel hahaha,,, that's funny, ironic, but that's a good thing to found this!
but i still don't understand. she has corn + futures contract.
price goes up, she sells her regular corn, because she makes more profit
price goes down, she uses futures contract, because this protects her from selling at a loss
but what happens with the futures contract when price goes up? she just holds on to it?
maybe a "toddler" version would help me understand....
And then gambles it all on calls and options.
@@ziggytonumaa Futures contracts have a specific delivery date. They are a contractual _obligation_ to sell or buy at the agreed-upon price. When the time comes, she _has_ to sell her corn at that price, and the cereal company _has_ to buy it - regardless of what the current market price of corn is at the time. This is the whole point of futures: to hedge against unpredictable and unfavorable moves in market price, by locking down a price for a delivery date ahead of time.
What happens if the sellers production did not meet the quantity specified in the contract?
Amazing , I should sign this contract with my gf.. She can't leave me when my value goes down.. Amazing 😅
This is called marriage... If there would be no marriage, you would leave her easier when you don't like her
Remzi Meriç Ceylan 👌
@@PUNEETKUMAR-kn5gz
So how about the kids?
Liability?
Or further future investment?
Rofl
if only marriage contracts can be traded...imagine that lol..
Congrats on your growth, I started trading in January on a 10 k account which has grown to 48 k, the broker I use offers Ai and bots for trading which I took advantage of by contacting their live support. I have been taking advantage of it so far. Your channel is also an inspiration
Wow, that's good
What broker do you use and how much is the minimum I can start with
Pathstonesecurities
I think with as low as 200 you can get started but I advice higher capital for proper trades
Nice, I think this is a safer way for people like me who rarely trust other people to trade for them, thanks for sharing I will opt for bots
Thank you, I looked them up, registered and just funded my account so I will start trading after Easter
Amazing to see someone else talking about this broker, I have been trading with them for 2 years plus and I even introduced most of my friends and close ones to it
Perfectly balanced, as all things should be.
Paris Cloud just watched endgame
i understood that reference
What a bizarre concept.
Just wonderful, I've been looking for "most successful options traders" for a while now, and I think this has helped. Have you heard people talk about - Winoorfa Option Olegroson - (do a search on google ) ? Ive heard some amazing things about it and my friend got cool results with it.
Can I just say, I love who ever created this! Like holy heck, this is the way finance needs to be explained. Break it down, don't complicate, be mindful the users ay not be hip to industry jargon. I love it. Wish you could make more videos.
Totally agreed. This was great
THIS VIDEO DESERVES MORE THAN A MILLION VIEWS FOR THE CLARITY AND FOR THE EFFORTS THAT WENT INTO IT. SUBBED.
i was thinking why would a person risk of sticking with only one price when he can be ultimately facing huge losses. after this video i understood how this really works . This was absolutely brilliant
so easy to understand , sometime is easier to understand than a sophisticate college lecture. thank you.
futures are standardized and exchange traded contracts, what you explained in your video is a forward contract
I think it is important to spread funds in channels that are poised to do well in recession. I'm currently finishing my 6th duplex and retired from the rat race at 35 and what funded all these were strategic investing in stocks and consistent trading crypto. I'm exceptionally well positioned for what's to come because my portfolio is solid enough to withstand and outperform irrespective of the market trends.
Way to go buddy! The only people who are going to make great impact in their investment portfolio are those who see the 2022 recession as the biggest opportunity to get rich.
Totally, smart investors made millions from the 2020 recession and such success rate could be achieved in this present market with the right approach.
how much investment funded your retirement? I make most stock purchases when the market is in a confirmed uptrend although most stocks I bought months ago which showed strong signs of doing well has greatly underperformed.
Gregg plot your course bud, I am personally invested 80% in stocks, 20% in crypto and of course with the guidance of my investment coach Frost Hilda, this yields an annual return of $400k. Frost focus on leading stocks in top industry groups, and aim for stocks with strong institutional support. He plots good entry point and has greatly enhanced my earnings and portfolio performance over the years.
I guess the market doesn't look bad, Its me who just don't see the opportunity it's providing right nOw.
One of the most effective teaching videos ever seen!
Excellent video. I also enjoyed the attention to detail, like when the farmer got upset the moment low corn prices was bought up @0:51
Six years later I've finally found this video. I love it with all my ❤. Thank you.
just started college and this was one of the first things in my text book and i got lost really quick. This video REALLY helped me understand what was going on. Thanks!!!
This was both really adorable and incredibly helpful for helping me understand Futures.
I thought it was to maximize profit but I now understand that is a risk management tool for both parties
I can't believe that I'm able to understand futures.
Thank you very much for this amazing video.
Soo much better then I guy with a whiteboard
This is glorious, I been tryin to find out about "price trends" for a while now, and I think this has helped. You ever tried - Piyatthew Forexify Trends - (should be on google have a look ) ? Ive heard some unbelievable things about it and my colleague got great success with it.
uh, no?
this video just says "contract. there for profit"
The whiteboard video actually explains the steps and terminology.
A good video needs to show each step when a price changes.
And it needs to explain how a contract is sold or bought to a third party without the other end of the contract changing.
Talking really slow, and empahsizing words like "BUY", and "CORN" and pretty pictures don't actually explain the underlying concept.
The biggest confusion can be that the buying and selling of the underlying asset is separate from buying and selling the contract. And the contract has two sides, a buyer and seller of the asset.
Also, while when a futures contract is sold, simply saying a contract is sold is incomplete. It needs to be specified whether the buying side or the selling side of the contract is sold. Both sides of the contract aren't sold.
If you want to learn the actual inner workings of how things work, instead of just thinking you understand something when all you know is the concept at a superficial level (and thus won't be able to explain it properly yourself), watch the "whiteboard" video
ruclips.net/video/nwR5b6E0Xo4/видео.html
Or a blackboard
.o
Lol
Thnx for making me understand this. Great video!
wow..!! Amazing explanation. saves a lot of time reading texts.
Came for the knowledge, stayed for drawing! Great work
Incredible explanation... Now this is what teaching really is!
Ma'am you have explained this concept beautifully...thank you very much ma'am for this effort😊
Best examination i was able to get on RUclips and I like the agribusiness risk management perspective. That was exactly what I wanted.
As an engineering student who start to reads about investment. This video really helps a alot
Thanks :D
brilliant work!!
Wonderful presentation with sketching
The best explanation ever. So simple and easily understood. Tq u so much. ❤️👍
The people teaching finance want to teach it in ambiguous manner to allow them to hold the secrets. Many of the “sophisticated schemes” on Wall Street are not sophisticated at all. It’s just a different vocabulary and built in hurdle to keep others from truly understanding what is going on.
Great video
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Well explained!! Really appreciate it, looking forward to more such videos!!
Great video. Easy to understand. Thank you!
Great explained!
Wow, this is so easy to understand. thank you so much for the video and your great affort.
Very informative and enjoyable to watch!!
Thank you for this very simple explanation. I needed this badly.
Well explain showing support and appreciation for the content all the way from the Land of Mt.kILIMANJARO. Tanzania
Great artwork and explanations, thank you!
Thanks, You explained it so well.👌
Very clear explanation. Thank you!
Best explanation so far!
So much effort.. i wish I could have watched that ad in your video...
Thank you so much for this video. I shared it with my 10 year old daughter :-)
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Since I joined Trading,I’ve learned a lot. I didn’t learn only from Lukasz Wilhelm and the moderators, but also from the people in the chat. the pre-market preparation with and the swing trade analysis . I’m glad I made the decision to join the IQD Momentum strategy team!
Excellent video. Very clear!! Thanks!!!!
AWESOME PRESENTATION.... THANKS
Love this presentation.. so tangible to see
well explained. Thank you so much !!
I mean JUST WOW, Mme u are truly AMAZING At making this kind of videos, The way how to get the Info in our mind with a WOW production . THANK U SO MUCH❤
Super helpful, thank you!
This is such a fantastic explanation!!!
This is really amazing! Superb video, thank you!
Thank you for your clear explanation.
It is very helpful .
very well explained. Thank you!
Excellent graphics yaar. Great.
Thank you this was very helpful and informative 👍👍
Brilliant Video! you really made a complicated concept easy to understand
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Your explanations were well explained and I understood it all but to add to what you said, I'll say that FUTURES is better enjoyed when traded on a platform with very high liquidity since the ROI gets to be higher, and on that note, I got MEXC to fall on.
This is such an amazing explanation, oh my god.
Thanks for the great explanation !
Thank you very much ...very well explained ...once again thanks a lot ...
Very very very well explained! Great job
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Things are easy when taught in a precise manner
Amazing teaching video. Thanks
Thank you for the very clear video.
This was very helpful. Thank you.
thank you so much for this informative video
Thank you very much, this is a great video!
wow. I love the channel. So very well explained. Short and sweet. Very inviting
Thanks!
very well explained.
Well explained!! 🔥🔥
Wow!!
Great Video.
Nice video, and good explanation. This is about Forward Contracts, which are Over-The-Counter contracts, unlike the 'Futures', which are standardized exchange traded derivative contracts.
Wow what an effort to make this video.. 😍😍..And a great Explanation
thanks so much for the video! You explained it extremely well
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Very well done! Thanks and happy new year 新年快樂！
This is a wonderful analysis of future market.
I finally understand futures! Thanks.
Well explained using a practical example
i recommend 👆 samgodfrey to you he taught me how to understand price action and best way to take profit which i have earned a lot from his winning strategy
superb explaination
Very well explained. Thanks :)
Brilliant explanation thanks
very well explained!!! please keep up the good work :) :D
thanks for the knowledge!
thank you so much for making this video :''), may God bless you
God bless Capitalism
indeed
although the underlying mechanism encourages selfishness and greed.
@@AdamWoodhams You'll get a dark side with any economic model. A mixed market economy includes the best of all worlds, while also eliminating some of the downside. It's the best we can do.
K V selfishness and greediness are equally common in every society, regardless of economic system. Capitalism is simply the best way to harness it and force those who seek wealth to go out and create something of value.
@@AdamWoodhams People like you are going to cause us to fall back into the system of feudalism and monarchism, where peasants work in the field serving their landlords and everyone lives in the dirt. That's what happened in the Soviet Union. Fuck you
Great work thank you very much
efforttt🔥🔥🔥🔥
Thank u...
Great video wow! could't explained it better'
that 4 minutes felt like 15mins
Super creative! Thanks x100
i love the video easy to understand
awesome explanation ❤
great video, love the explanation with the drawing :D
I am liking and subscribing! (The video was short and I could assimilate the subject so easily)
Thanks for the explanation :)
Very Good Video! Entertaining and Educational!
Hi! Thanks for the video. I'm starting to learn about futures. I already trade Forex and I'm satisfied with my trading. What I'm finding a bit difficult to understand in futures contracts is how do I backtest the contracts that expire monthly, for example? I know I can't trust a continous chart to do it because it's an artificial build, right? This is more common in the mini contracts, right? The full contracts are easier to backtest and do technical analysis because they are just one contract, one chart, so I can go back in time let's say, 3, 4 years and do some technical analysis to determine some critical support and resistance areas. How do futures traders make this analysis with mini contracts that expires every month? Do I have to open a lot of individual charts and write down the most busy S/R areas and then apply it to the most recent chart (contract)? OR can I use the main full contract chart? Will the main full contract chart have the same areas of S/R? This is what I wanna understand so I Can apply my Forex trading skills to the futures. Forex is easy I just need to choose a pair and voilla, I have 20 years of data in the same chart with critical price areas that I can trust. I believe that it's impossible to have a trend following system in mini futures because I need to get rid of my position in 1 month...
agauerm, you ask this question as if the people who made this video were Forex traders. They're just filmmakers who learned enough about this subject to make a decent video. Nuff said.
Go to FF or other community that discuss forex. Technically.
Incredible drawings. Idk if I know anything about future though jk great video great explanations
Hopy cow this is a great video and explanation, thank you!
good explaination whats exactly hedge fund works as well！
Great explanation