Futures Trading
About Futures Trading
A specific commodity asset or security will be purchased or sold under a futures contract at a specified price and future date. Futures exchanges like the CME Group are where futures contracts, or simply "futures," are traded. To trade futures, a brokerage account must be approved. Typically, a commodity or financial instrument is a traded asset.
Why is Futures Trading important?
In ways that stocks and ETFs cannot, futures provide a few options to diversify your investment portfolio. In contrast to secondary market items like equities, they might provide you direct market exposure to the underlying commodities assets. Furthermore, they provide you access to particular assets that aren't frequently available in other marketplaces.
Who should take the Futures Trading Exam?
- Finance managers, senior executives, executives
- Account executive
- Finance analyst
- Investment manager
- Strategist
- Treasury manager
Futures Trading Certification Course Outline
- What is Futures Trading?
- Why trade futures and the benefits it offers
- The forward vs futures market
- Terminologies and key concepts involved in futures trading
- What are Margins and why they are required?
- Hedging Basics
- Index Futures and trading futures with Index
Certificate in Futures Trading FAQs
What is the Futures Trading Practice Exam?
This exam tests your understanding of futures contracts, trading strategies, risk management techniques, and market regulations in the derivatives market.
Who should take this exam?
Students, traders, investment analysts, brokers, risk managers, and professionals preparing for finance certifications like NISM, CFA, or FINRA should take this exam.
Do I need trading experience to take this exam?
No. Basic knowledge of financial markets and instruments is helpful, but the exam is suitable for both beginners and professionals.
What topics are covered in the exam?
The exam includes futures contract structure, trading strategies, margining, technical and fundamental analysis, risk control, clearing processes, and regulations.
Will this exam help in my trading or finance career?
Yes. It helps strengthen your knowledge of market mechanics and builds your confidence in using futures for hedging, speculation, or arbitrage.
Can students take this exam?
Yes. It is ideal for students studying commerce, finance, or economics and those preparing for competitive exams in finance.
Is this exam useful for brokers and analysts?
Yes. It covers contract specifications, settlement systems, position tracking, and risk management techniques relevant to trading desks and advisory roles.
What will I learn while preparing for this exam?
You will learn how to trade futures, apply strategies, use market data for decisions, and follow rules for safe and ethical trading.
Does the exam include real-market examples or scenarios?
Yes. It includes case-based questions on trading decisions, margin calls, and strategy execution.
Can trainers or institutions use this exam for teaching?
Yes. Trainers can use this exam to assess learners and support practical learning in financial markets and trading workshops.