Market guide
Futures education guide
Futures are standardised exchange-traded contracts that reference an underlying market. They can be used for exposure, hedging and price discovery, but the details of each contract matter.
What futures are
A futures contract sets out the product, contract size, expiry, settlement method and minimum price movement. The contract is not just a price on a screen. A trader needs to know the notional value, tick value, margin requirement, expiry month and whether the contract settles in cash or through delivery.
Key terms
Contract specification
The rule sheet for a futures contract, including product code, tick size, expiry and settlement.
Tick value
The dollar value of the smallest quoted price movement.
Notional value
The total market exposure represented by one contract.
Margin
Collateral required to hold a futures position, separate from the full notional exposure.
What to learn next
- How expiry months work and when positions need attention.
- How variation margin can affect account balances after price moves.
- Why index futures, commodity futures and interest-rate futures can move for different reasons.
- How futures differ from CFDs and direct share ownership.
Useful references
Related guides
General education only
This content is general education only and does not consider your objectives, financial situation or needs. Futures are leveraged and can move quickly against you. Availability and suitability depend on account approval and relevant terms.