Futures Market Basics

Course Overview

Futures Market Basics explains how futures markets work, how they differ from other markets such as equities and forwards, and introduces the key participants involved. The course covers essential concepts including price discovery, hedging, leverage, execution, and clearing. It also examines the roles of customers, brokerage firms, exchanges, and clearinghouses—highlighting their responsibilities and how they interact within the market. The course concludes with an overview of how exchanges and brokerage firms work together to help safeguard the integrity of the markets.

This course provides a foundation for future FIA Markets Academy online and virtual live courses. 

Course Duration:  45 minutes

Key Takeaways

Upon successful completion of the course, learners will be able to:

• Explain the purpose and core functions of futures markets.
• Describe how futures contracts are structured, traded, and settled.
• Identify key market participants and their roles.
• Understand margin, leverage, and daily settlement.
• Recognize basic hedging and speculative strategies.
• Describe the role of exchanges, clearinghouses, and regulators.

This course focuses on:

• Key characteristics of futures markets
• The differences between futures markets and other markets.
• Different types of customers.
• Brokerage Firms: a critical intermediary. 
• Exchanges and Clearinghouses roles and responsibilities 
• Futures market safeguards. 

The course uses videos and interactive exercises, and knowledge checks to help build and reinforce learner understanding. It concludes with a 20-question assessment.

Who Should Take This Course?

• New hires at trading firms, brokerage firms, exchanges and clearinghouses and anyone who want to learn more about the purpose of futures markets and how they operate.
• Futures Customers who want insight into the benefits of futures markets and the safeguards in place.
• Regulatory staff who are seeking a clearer picture of how the market is structured to meet industry requirements.
• Students and Interns in finance who want to gain a better understanding of this asset class.