How To Trade Futures For Beginners | The Basics of Futures Trading [Class 2]

21 thoughts on “How To Trade Futures For Beginners | The Basics of Futures Trading [Class 2]

  1. Hey Clay! Thank you, love the way you explain the concepts. Easy to understand, and above all, love the Presentations, colorful and with a childish feel.

    Wanted to ask the following (maybe you will cover it following classes, if so, don't mind about responding, and I'll wait for the classes to come out):

    1. What does the contract of the ESZ19 represent? For example, if you buy a CALL OPTION with "XX" strike price for a stock, it represents that you have the option to buy 100 shares of that stock at the strike price of "XX". What would be the analogy with for Futures Contract?

    2. How do the Futures Contract move in relation with the Undelying? Say the underlying moves $10 dollars. How many points will can I expect my Futures Contract to move? . In the Options World we have the greek "Delta", that gives us a glimpse about that. Is there something similiar for the Futures Contract?

    3. What can we infer about the SPOT price of the underlying looking at the price of the FUTURES CONTRACT? Say we hear on CNBC that the FUTURES CONTRACT for the S&P E-Mini (say the: ESZ19) are going up in points (trading at higher points every day). What can you infer about the sentiment of the market regarding the price of the S&P index in the future? Does the market think the price of the S&P index will go UP by december 19 or DOWN by december 19, thus rising the points at wich the ESZ19 is trading in the market.

    Thank you!


  2. I dont get one thing that, why the makers of this futures contracts,, allow this contract to be traded in stock market. and after the retail trader buy and sell this contract will the makers of this contract get there deal of setting a future price (buy/sell) for an underlying asset. who make this contracts and who puts the initial buy sell bid and ask in this contract.

  3. Good information bro, your style is appealing, makes trading seem very accessible…… keep up the good work!

  4. Thanks Clay ! The fascinating part about commodities is that they have been trading since ancient times, what changed is the technology of the process, your right when you say the basis of trading is timeless

  5. What’s dangerous about futures is with just 1 contract, if an economic number or news worthy event comes out, you can lose instantly $1,000 just like that if you are on the wrong side of the move. Also, with just 1 contract, if you are changing from 1 time session to another, you could lose $1,000 just like that. I use to trade futures to get around PDT, but I got toasted trading futures and wish i didn’t. It’s a much more difficult investment vehicle to trade. I urge all new traders to stay away from trading futures!!!

  6. Amazing videos! Thank you so very much. CAN'T wait for the upcoming videos. I really hope yo cover Futures from A to Z. you are THE BEST.

  7. So how much does it cost to buy in? Awesome set of videos so far. I started to read mastering the trade by John Carter and it has let me to look into futures.

  8. Clay i hear people about natural gas future symbol /NG but i do not see any number telling me when the contract is expiring like the symbol ESZ19 I am confused By That

  9. The best tutorial video and professional presentation ever. Again I am a trader myself and have seen in the past few tutorials but your’s is very helpful. I would like to know please which is your preferred futures brokers and platform. Thanks’ Reuben

  10. Is this a scam where you are trading with a company and have invested a lot of amount and 5 moths still not get your profit. ? They always asks more.

  11. Is that universal 1 tick is .25 of a point? And where does it say how much is 1 point worth

  12. The first video made sense – later in this video I just got completely confused.

    I also don't understand the stock market at all. It's like people playing with pretend money and eventually cashing it out for real money. It just confuses the shit out of me. Like why would someone make a contract with someone and then why would a bunch of random people bid on it and what the hell does them buying parts of the contracts even mean or do? It just feels all made up.

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