Hi Dear viewers today we're going to talk about Futures Judging from the face value of transactions, the total trading volume of futures even exceeds that of the massive foreign exchange market It's the world's largest and most active trading market, and it can be called the king of financial products. Such a simple basic logic can evolve into a variety of tactics and intricate trading strategies Let's talk about futures today. What are they on the surface What are they in essence? What are their characteristics? And how are they used in the capital market? The full name of futures is "Futures Contract." Futures Contract It is a contract in which Party A and Party B stipulates that a certain commodity will be traded at a predetermined price at a specific time in the future For example, I, Lin bought a gold futures contract at $3,000 expiring in December 2025. Assuming this futures contract is for 100 ounces of gold, this means that I promise to buy 100 ounces of gold at $3,000 when it expires in December. Party B is the short party in this futures contract. For example, Lao Wang promises that he will prepare 100 ounces of gold on that day and sell it at $3,000 per ounce. Let's say the gold price has fallen to $2,000 on the day , there's no other way. I have to accept it and buy it at $3,000 I'll lose $1000 per ounce If the market rises to $5,000 There's no other way. Lao Wang has to accept it and buy it at $3,000. I'll make $2,000 and Lao Wang will lose $2,000. You see, there are many variables in this contract. Among them when it expires and what the commodity is are all agreed upon in the contract. Then this contract can be traded freely in the market. The long and short positions are the parties A and B of this contract. The transaction price is the agreed future price. Of course both parties don't know about each other. The logic may be a bit confusing to explain, but the principle is actually very simple. It's very similar to buying and selling gold, except that you don't buy now, but agree to buy at a certain time in the future. So, when futures first appeared, the most common application was to help suppliers of these commodities hedge their risks. For example, if I were a wheat farmer and wanted to sell wheat in the market I would have to spend a lot of money upfront to pay for seeds, fertilizers, and land rent. It might take half a year for the wheat to grow. I'm afraid that the market price of the wheat I planted will plummet and I'll lose money. In this case, I can short sell. For example, if you lock in the selling price of wheat futures six months from now. On the contrary downstream wheat buyers such as flour mills, bakeries, breweries, etc they have to keep buying wheat. They are afraid that the price of wheat will skyrocket in the future so they can buy wheat futures to lock in the purchase cost in advance. Similarly airlines can go long on jet fuel futures to hedge against Gold jewellers can go long on gold futures to hedge against Gold developers can go short on gold futures to hedge against gold. In short, if you expect to buy in the future, you go long ; if you expect to sell in the future, you go short Lock in the price in advance to hedge the risk of your business. For example, the oil company Exxon Mobil's annual report actually shows that it continues to hold short positions in natural gas futures. You see, for many commodities, there is not only a spot market but also a parallel futures market. It is not a futures contract, but rather futures contracts that may expire every month in the future. These are all traded and the prices of these contracts are usually very close to the spot price. Of course, there are differences. There are very subtle factors such as interest rate discount, risk premium, etc. Many funds and brokerages play with these, but generally speaking, they are very close. Therefore, for most investors, you can basically understand futures prices and spot prices as the same thing. For example, you think the price of gold will rise in the next six months. If the price goes up, you can indeed go to great lengths to buy gold bars first and save them and then sell them later. This may be troublesome, unsafe, and the handling fees are very high. But in fact, you can directly buy gold futures which will also rise and fall with the gold price At that time, you only need to sell it before the expiration date. You don't need to actually hold the gold bar to profit from the rise and fall of the gold price. So you see, futures can closely track the price of a commodity but do not require the actual delivery of the commodity, which has suddenly expanded its market demand a lot. In fact, if only the manufacturers and suppliers we just mentioned were buying and selling futures, how could they achieve trillions of dollars in daily transactions right? For example, starting in early 2024, cocoa bean futures prices suddenly skyrocketed from $4,000 to $12,000 within a few months, a 200% increase. Why was that? At the time, a large number of hedge funds bet $8.7 billion on its futures betting that it would rise and going long on it. Cocoa beans are the raw material for chocolate and a significant market with an annual output of over 5 million tons. The world's major cocoa beans come from Côte d'Ivoire and Ghana. At the end of 2023 there were reports that showed there might be heavy rainfall near Côte d'Ivoire which would be detrimental to the growth of cocoa trees. But more importantly, a plant disease trend was spreading in that area at the time . is called "black pod disease," a fungus that severely damages cocoa trees. Many hedge funds, upon studying it, discovered that this could lead to a sharp decline in future cocoa bean production. Consequently, the previously quiet cocoa futures market was suddenly flooded with hedge fund speculative capital, which went long on cocoa futures tripling the price. Let me tell you, these commodity hedge funds actually saw a large number of losses during the 2008 financial crisis, and then went quiet for a long time. It was only because of this very good opportunity that so much speculative capital suddenly emerged. At that time, hedge fund funds once accounted for the entire cocoa futures market. Over 85% are long positions As expected, the spot price went up. This is a very typical example of using the futures market for speculation. And let me say by the way, in this example, not only speculators are involved. If the price of cocoa beans rises normally, the downstream buyers that is, the chocolate manufacturers, will definitely be greatly impacted But at that time, there was a very large chocolate manufacturer in the world called Hershey. He just wanted to hedge the risk of rising cocoa bean prices so he went long on cocoa futures. So if you look at his financial report for 2024, it has more than $500 million in revenue in the commodity futures and options column. Well, what we just said is that futures can track commodity prices for hedging and speculation. But if that's all, we have a narrow understanding of futures. This is just a 1.0 version of the understanding of futures. It can not only track the prices of physical assets such as oil, soybeans and gold which we call commodities, but also It can track virtual assets and financial assets. For example, stock futures are for delivery of stocks upon maturity, and treasury bond futures are for delivery of treasury bonds upon But we are still narrowing our thinking about futures Futures can not only track the price of an asset but can even track a very abstract indicator. I will simply track a number. For example, what is the most important type of futures in the world? It is stock index futures. It does not say which stock you have to deliver, but it tracks the stock index. Then you may want to ask, how to deliver an additional number upon maturity? For example, I bought a long S&P 500 futures contract expiring in December at 6000 points If the expiration date is the third Friday of December when the market closes, and the S&P 500 rises to 10,000, then I will make 4,000. When it expires, the futures clearing platform will directly transfer the money to me. Of course, this futures contract actually has a multiplier of 250 times, so if I buy one lot I actually make 4,000 x 250 equals $1 million. So, my short seller, Mr. Wang, lost $1 million. Did you see that in this example, there's actually no need for physical delivery. It simply expires, and I settle the profits and losses of both the long and short sides based on this number . This is essentially what futures are a smart and significant evolution in financial markets. So, in theory, any objective, quantifiable indicator that can be bet on can be traded. As long as enough people are willing to trade it, the exchange can create a corresponding futures contract. For example, I could create a futures contract based on the number of views of Lin's videos, expiring on December 19th with the contract code "LINZ5." This is a market standard. Z generally represents December 5, which means 2025. This means the LIN futures will expire in December 2025. Then, I can set the settlement indicator, for example, to 5:00 PM EST on December 19th. Xiao Lin account on Bilibili, Tik Tok, YouTube total views in the last month divided by 1 million this index. For example, if my total video views that month were 50 million the settlement index would be 50. If you want to play futures trading, you can use my recent video views to predict what the December performance will be like. For example, if my performance in September and October was particularly strong and my follower count skyrocketed, people might speculate that December's performance would be even better, and the price of "LINZ5" futures would rise accordingly. Of course, I'm just using this example for fun. No one is bored enough to trade this futures and it's easy for me to manipulate. But what's the core point I want to make? Futures don't necessarily require the delivery of a specific asset or product in the future. They are simply bets on a specific data point in the future. You can bet on oil prices, gold prices, government bond prices, interest rates, or Xiao Lin's views. Through the simple format of futures, all indicators can be financialized and tradable. This is why futures are the king of financial products. Let me tell you, the true king is able to solve problems efficiently and accurately through simple means . For example, if you're traveling or on business abroad and urgently need internet access but can't find Wi-Fi, Saily eSIM can easily solve this problem You don't need a physical card. Just download the app and choose the right plan in 200 regions. You don't have to search for public Wi-Fi or queue up at the local airport to buy a SIM card. There are regional and global plans to choose from. You can access the internet anytime, which is very convenient and affordable. You can also save on roaming charges. It is compatible with both iOS and Android. You choose the region and then choose the right plan by day or by traffic and you can start using. However, before installing, you still need to confirm whether your phone supports eSIM function. Download Saily now through the link in the top comment: saily.com/xiaolin Use the coupon code [xiaolin] on the eSIM checkout page to enjoy an exclusive 15% discount Now, let's get back to futures. The "futures" in futures is to give the contract an expiration date and a delivery rule. It ensures that the futures price can closely track the corresponding indicator In fact, as the futures market develops, it has become more of a price bet. I hope to make money when the indicator rises, so I can go long. I hope to make money when it falls, so I can go short. In fact, the vast majority of futures traders in the market do not hold until maturity, but liquidate their positions before the delivery date. They do not actually deliver gold , oil, or soybeans. For example, the global crude oil futures market has such a large trading volume but in fact, less than 1% will actually make physical delivery Most people close their positions before the expiration of these futures Let me tell you about a type of futures that embodies the essence of price betting in futures to an extreme. perpetual futures it is widely used in the cryptocurrency space. They never expire, and there's no physical delivery Instead, they use a set fee calculation method to ensure that the futures price converges closely with the physical price. We won't go into detail. Anyway, perpetual futures don't even mention the word "futures" in futures. It's just "goods." It's a pure price bet between long and short sides on the price of goods. Before we delve into the complexities of futures trading and crash stories, let's first talk about the most common products in the futures market and their common uses. First, let me test you. Do you know which futures product has the highest transaction value among all futures products in the world ? I'll give you four options. A. Crude oil futures B. Gold futures C. Stock futures D. None of the above ? Which one do you choose? D. None of the above. In fact, the product with the largest trading volume is called SOFR futures. Are you thinking what is this? never even heard of it SOFR futures actually represent the first major category of futures products I'm talking about : interest rate futures. SOFR is interbank overnight financing rate Its futures are a weighted average of daily interest rates for a period of time before the expiration date. For example it is the tracking of October, November and December the average of the daily interest rates for the 3 months To put it simply SOFR futures are actually futures on future short-term US dollar interest rates Actually, in my textbooks and at work, the short-term interest rate futures on the market were not SOFR but Eurodollars . Does the term "Eurodollar" sound familiar to those who are a little familiar with finance? I think the name is a bit misleading. The Eurodollar sounds like a foreign exchange futures, but it actually tracks the US dollar's three-month LIBOR rate futures. But I digress, let's not go into that. Within the interest rates category besides SOFR another major category is Treasury bond futures. This is easy to understand: Treasury bonds are delivered at maturity. So why is the trading volume of these interest rate futures so large? Because all funds and investment portfolios are subject to interest rate risk Without any exception Whether your portfolio involves loans, Treasury bonds interest rate swaps, or even basic cash flow and stocks, as long as the asset portfolio is large enough there is interest rate risk that cannot be ignored. For example, if you have to pay $1,000 in June of next year, you may not care about this interest rate risk. But if you have to pay $10 billion, you cannot ignore the interest rate risk during this period and you must hedge it . That's roughly what it means. For most professional institutions and professional investors, one of the most common and popular ways to hedge interest rate risk is interest rate futures. Just look at the hedge funds and investment banks on Wall Street. Every trading group has a very large face value. The SOFR futures position is the kind that would make me drop my jaw when I first saw it. Of course, although they seem to have a large face value the actual risk is very short-term , so fortunately, it's not a big deal Next, the second largest type of futures is stocks. The most important among the stock categories is naturally stock index futures with relatively large trading volume, such as those tracking the Nasdaq 100 index, tracking the S&P 500 index, and tracking the European Stoxx 50 NK225, CSI 300 and etc Because stock index futures can serve as a proxy for the entire market, they're most commonly used to hedge overall market risk. For example, if I buy Microsoft or Nvidia stock, I might believe these two stocks will outperform the broader US stock market, but I don't want to take the risk of whether the broader market will rise or fall. So, I can simultaneously short the Nasdaq 100 index futures to hedge a portion of my portfolio's Beta. This approach is very common in the A-share market. Although short selling is strictly restricted in the A-share market stock index futures are allowed. Therefore, quantitative funds can hedge against the risk of rising or falling markets by shorting multiple stocks and index futures. Generally funds that carry name with "enhanced" "neutral" "hedge" these funds are likely to use shorting stock index futures for hedging. Another large category of futures products is commodities, which have the largest trading volume. For example, there are many other futures products. For example, the foreign exchange futures market is actually not small but compared to its huge over-the-counter trading, this futures market does not seem that big. There is also a very common and special futures called VIX futures which is a stock volatility futures. It tracks the implied volatility of the S&P 500 index. From a quantitative perspective, this is quite complex. Some funds may use it to hedge some tail risks of stocks or perform more complex statistical arbitrage, etc. There are some more bizarre ones such as weather futures, carbon emission rights futures, wine futures, etc. The reason why these futures are so widely used and have such a large trading volume is that in addition to its flexibility in tracking any index from the perspective of financial product design, it has several very obvious advantages. First of all, the most basic feature of futures is that it supports high leverage. For example, if you want to buy $100 of stocks without leverage, you must have $100 in your hand. Generally, the exchange will allow you to have $50 in your hand and then buy $100 of stocks which is double leverage As for long futures, you may only need $5 to buy $100 of futures If you have $100 in your hand, You can buy $2,000 of futures, which is a 20x leverage. The second feature of good futures is that it is very easy to short. If you want to go long or short, it is just a matter of direction, just like going left or right very easy. For example, shorting stocks will have many restrictions. You have to borrow money first, then sell it and then buy it back. Borrowing stocks also has restrictions, and supervision also has restrictions. In short, it is very troublesome. But futures, as we said just now, are a betting contract. Two people agree that if the price goes up, you make money, and if the price goes down, I make money. In this way, the flexibility of shorting is much greater. The third major feature of good futures is that they are secretive Normally, if you buy stocks up to a certain scale, you have to disclose the major shareholders, and announcements are required. Everyone can see it. When you buy or sell government bonds or many over-the-counter transactions, you have to go through brokerages and investment banks Although these are not public information but insiders can see these transaction data. The futures market is completely a black box. Everyone trades on the platform, and you can only see how many people traded at which price how many buy orders and how many sell orders there are, and other information such as price and quantity. But the specific information about who bought and who made the transaction is completely hidden. You often see a large order suddenly appear in the market one day, but you don't know who is trading it The traders are just guessing. For example, at 9:38 am on September 26, 2024, The SOFR futures market suddenly saw the largest transaction ever: 118,000 buy contracts. Each contract has a face value of $1 million, which equates to a $118 billion trade. No one knew who was behind this single transaction and rumours began to swirl among traders. Some said it might be insider information, and the Federal Reserve might cut interest rates Others said no, no, no, it might be a certain asset management company hedging its risks. There were all sorts of rumours and everyone was just guessing. This perfectly illustrates the secrecy of futures trading. Didn't we talk about the crash story before? In 1995, a 28-year-old named Nick Leeson worked as a trader at Barings Bank. He bankrupted this 300-year-old ancient bank by trading in futures At the time he went long on the Nikkei 225 stock index futures just happened to coincide with the Kobe earthquake. Of course, there are many other options and transactions Anyway futures they are secretive. Not only does the market not know who is trading, but even the banks themselves don't know who is trading. We have just talked about the basic logic, basic characteristics common uses of futures Now, let's talk about some less conventional ways of playing. First of all, the high leverage of futures means that a very small amount of funds can leverage a very large market. This feature becomes a sharp weapon in the financial market. If it falls into the hands of a reputable and upright person, it can be hedged at a very low cost. If it falls into the hands of Ouyang Feng, for example it will turn the entire world upside down. Next, I want to say that this "Ouyang Feng" is the famous capital vulture Soros In the early 90s, Europe's major economies hadn't adopted the euro yet and each had its own currency. However, they had an exchange rate mechanism called the ERM. Simply put each country would peg its exchange rate to the Deutsche Mark. This fixed exchange rate ERM mechanism can be considered as the predecessor of the later euro system, equivalent to a trial operation. The UK was initially reluctant to join the ERM, but in 1990, after much thought, it felt that being tied to Europe's development seemed good and would also help control inflation. So, they decided to give it a try. The pound and the Deutsche Mark were pegged at 1:2.95 but with a floating range of 6%. The advantage of this fixed exchange rate policy is stability allowing businesses to trust each other's currencies. But in the long run, it actually needs to be tied together so that the economic growth of the two countries resonates. For example, if you overheat, I overheat; if you slump, I slump. In this way, the central banks of both sides can raise and lower interest rates together, which is harmonious this is a relatively ideal situation If the two economies diverge and you still peg the exchange rate, the currency of the weaker economy will generally be under pressure, and you will have to make a choice This was the situation in 1991. In 1991 German economy is significantly stronger than the UK and the UK's inflation is higher than Germany's, the pound had the tendency to depreciate. At that time, the Bank of England was in a dilemma. If you want to maintain the exchange rate, you have to attract funds by raising interest rates. However, if you raise interest rates when the economy is sluggish , it is like dieting when you are sick. It is easy to cause internal injuries If the UK wants to stimulate the economy it has to cut interest rates. In this way, the exchange rate of the pound will easily be untethered from the German mark. This is where the underlying contradiction arises. Soros, the vulture, saw this conflict and flew over. He felt that the pound was already a spent force and was seriously overvalued so his Quantum Fund began to prepare for what could be the short of the century To put simply, he wanted to attack the pound by shorting it, deal a fatal blow to the Bank of England and then profit from it. So, first of all, the most normal way is to short the pound through over-the-counter transactions borrow pounds from banks, and then sell them, perhaps exchanging them for marks or dollars, to put downward pressure on the pound. But this force is limited after all. In order to maximize the intensity of his attack, Soros began to work hard in the futures market to amplify his attack power. In fact, his logic is not complicated at all, but have you ever thought about why his shorting of futures would put pressure on the spot market? Aren't futures contracts for the future? Soros signed a contract with someone saying that he would sell pounds in three months so why would the spot price of pounds fall? This comes to why the futures price is highly consistent with the spot price. If the futures price and the spot price really deviate a lot, for example, Soros is frantically shorting pound futures, then the pound to Deutsche Mark exchange rate due in December will fall to 1:1 while the spot market remains unchanged at 1:2.95, what will happen? Well, you smart people, have you already felt that there is a huge arbitrage space here that is profitable? How can I arbitrage? First, I will do everything I can to borrow pounds. For example, I borrowed 100 million pounds, and then I will convert them into Deutsche Marks in the foreign exchange market, so that I will get 295 million Deutsche Marks Meanwhile, I went long on £295 million in pound/mark futures the market is 1:1 at this time. So now I have these 295 million Deutsche Marks in my hand and I can wait and earn some interest on the deposit. Let's ignore this. When the futures expire in December, I can, based on the contract exchange these 295 million Deutsche Marks for 295 million pounds at a 1:1 ratio Then I will repay the 100 million pounds I borrowed and maybe pay some interest, which is also negligible. In this way, I have made 195 million pounds out of thin air. Only a fool would not take such a good opportunity right? A large amount of gold will flow into the market to short the pound spot and go long the pound futures, which will naturally pull the prices of futures and spot to a very reasonable range. Anyway, what do these mean? Meaning that even if Soros was shorting the futures market, it would still bring huge downward pressure to the spot market, pushing up the value of the British pound. However, I omitted one point just now. Soros actually shorted a small amount of British pound to Deutsche Mark futures at that time because this market is not very large and its liquidity is relatively poor. He shorted pound-dollar futures and simultaneously went long on German government bond futures to effectively simulate short position on the pound against the Deutsche Mark It's a bit confusing, right? It's okay. Anyway he shorted the British pound in the futures market . Soros used about 10 times leverage to short the British pound in the futures market at that time Then other capital in the market also found that the British pound seemed to be loosening and joined the short-selling team The central bank fought back. They were not stupid. They fought back not only in the spot market but also in the futures market, fighting against the short sellers and Soros. It kept consuming its foreign exchange reserves to buy British pounds and British pound futures. Who wouldn't use leverage? Both sides were using leverage. In fact, at that time, the targets of these short sellers were not only British pounds The Bank of Finland the Bank of Italy a week or two ago in early September. had surrendered and announced the decoupling from the Deutsche Mark With their defeat, more and more short sellers joined the ranks of attacking the pound. So on September 15, 1992, the chief investment officer of Quantum Fund walked into Soros' office and said, "Mr. Soros, I think we have a chance of defeating the Bank of England. I want to increase my position by $1.5 billion." Soros was a little unhappy when he heard this. The investment manager thought Soros thought this idea was too risky. Unexpectedly, Soros said, "Our probability of winning is so high now, and the potential returns are so high. why only increase the position by $1.5 billion? Why not 15 billion?" I guess the investment manager's jaw almost dropped after hearing this. You see, this old man usually doesn't say a word, but he is really brave at the critical moment So Quantum Fund really shorted nearly 10 billion pounds in the futures market the day after Soros increased his position, Wednesday, September 16, 1992, It was a day forever etched in the history of finance When the market opened The market sensed signs that the long side the Bank of England was losing ground The bears rushed in like a tide to short the Bank of England. The Bank of England was buying up the pound at a rate of about 2 billion pounds per hour, struggling to hold on. Seeing that its foreign exchange reserves were about to be depleted, the Bank of England became anxious. At 10:30, it announced an interest rate hike from 10% to 12% by 200 basis points to maintain the pound's exchange rate. Do you know what Soros's most ruthless move was? In fact, he was not sure whether the pound would eventually decouple, but he had already predicted that the Bank of England would raise interest rates, so he ambushed a large number of short positions in British gilts in advance The British interest rate hike while still in fierce competition on the pound, but Soros already made a fortune in British gilts. Let's go back to the pound. Although the interest rate was raised by 200 basis points but the market still did not buy it. The selling pressure was still the main force. The Bank of England was obviously forced into a corner and did a very stupid thing. For the first time, it announced another interest rate hike at 2:15 pm on the same day. This time it was increased by 300 basis points to 15%. You see, other countries have not been able to raise interest rates by this much in several years. The Bank of England did it for you in 4 hours. Isn't it obvious that they are telling the world they have no cards left and can't hold on any longer? So although high interest rates should attract everyone to buy pounds but the market was completely crushed by short sellers It was probably only a matter of time before the pound fell. At this time, Soros, the old fox made another ruthless move. He analysed that if the pound fell, the British government would most likely cancel the two interest rate hikes, and government bonds would rebound rapidly. So he quickly switched from shorting government bonds to going long on British and German government bonds. Sure enough, he did it again. That same evening, at 7:40 p.m., the Bank of England could no longer hold out. The Treasury announced Britain exited the ERM severing the pound’s tie to the Deutsche Mark The two interest rate hikes were indeed reversed. The British pound plummeted, falling 15% against the Deutsche Mark and 25% against the US dollar. British government bonds surged. We won't comment on Soros as a person but his strategy was truly powerful. Whether it was the collapse of the pound or the Bank of England's interest rate hikes and then rate cuts, Soros had made the right bets on all of them. He went a step further by taking early futures positions long on the UK stock market short on the German market profiting from both. Moreover, he not only correctly judged the direction, but also seized the opportunity and launched an all-out attack This entire operation is considered one of the most successful trades of the 20th century. In the end, it's estimated that Soros made about $1 billion shorting the British pound and another $500 million from bonds, stocks, and other miscellaneous investments His fund, which originally had a size of just over $3 billion, made $1.5 billion in those few days. In fact, it wasn't just Soros and the short sellers who made money. Citigroup, Morgan Stanley, Chase Manhattan, Bank of America, and many other Wall Street investment banks are estimated to have made more than $1 billion in those few days. The Bank of England decoupled from other currencies in such a shameful way. This day is also known as "Black Wednesday." I think this incident may have left a psychological trauma on the British. Why didn't they join the Eurozone no matter how much they were persuaded? I tell you, a large part of the reason is due to Soros. Look at Soros's profit this time. In fact, judging the direction is one aspect but the high returns also come from taking advantage of the high leverage of futures. Later, during the Asian financial crisis in 1997 short sellers shorted Southeast Asian currencies, and Southeast Asian central banks then used their foreign exchange reserves to buy back Their core battlefield was also in the futures market. Of course, there are some other variables in the Asia financial crisis, as well as the involvement of banks from various countries. That's quite interesting. We'll talk about it in a separate episode later. Okay before we go deeper into the discussion, let's first summarise. We saw what futures are. Some people use them for hedging, some for speculation , and found that they are essentially a bet on future prices. All indicators are acceptable. The main futures in the futures market are interest rates, stocks, commodities and other futures They have several typical characteristics. High leverage, easy short selling, and great secrecy have made them the darling of the financial market. Through the example of Soros, we saw a typical use of futures, which can achieve the greatest damage and the greatest effect at a low cost . However, these are just appetisers Now that we have finally explained the basic uses of futures, let's move on to some of its more powerful tricks and more complex gameplay to see how it explodes the bond market the stock market the oil price, etc. I want to continue the discussion, but it seems that the progress bar does not allow it. Then we will continue with the traps of futures in the next episode.