Futures Contracts

TradingThe Basics

References NFA CFTC CME Ninja Trader

Aim To inform you about one “modern”

type of business and its applicability in our everyday live and to express my ideas about it.

Outline 1. Basic Definitions2. Asset Classes3. Futures Market Participants4. Futures Market Structure5. Fundamentals of Trading

Allegory Trading vs. Bookmaking How much would you be willing to pay

for the advice on how to beat a bookmaker?

Mathematics of betting/bookmaking

Allegory

1. Basic Definitions Futures contracts (and their history) Investment vs. trading Risk/return Risk management• Orthodox vs. contrarian view

(diversification, time horizon, etc.)

2. Asset Classes Equities Fixed Income Securities Commodities Currencies Indices Etc.

3. Futures Markets Participants

3. Futures Markets Participants

4. Future Market Structure

4. Futures Market Structure Exchange (CME) Products (e-mini) FCM & IB (Ninja Trader) Clearing House (CME) Loads of regulation

5. Fundamentals of Trading

5. Fundamentals of Trading Smart, big and dumb money Small, mid-sized fish, sharks and

fishermen

5. Fundamentals of Trading Mathematics of trading