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Topic
Futures
15 guides in Finabase Learn
- Commodities explained: energy, metals, crops and how to own them What commodities are, how energy, metals and agricultural markets differ, the ways to get exposure, and what 20 years of DBC prices show against stocks and the CPI.
- Commodity A basic, interchangeable raw good such as oil, gold, wheat or copper, traded in bulk on spot and futures markets.
- Contango A futures market in which later-dated contracts trade above nearer ones or the spot price, which erodes returns when rolling long positions.
- Contango, backwardation and roll yield: why USO lags oil What contango and backwardation are, how rolling futures creates roll yield, and why the USO oil fund ended 2006–2026 far below spot crude, with real data.
- Crude Oil Unrefined petroleum, traded mainly as WTI and Brent futures, and a key driver of energy stocks and inflation.
- Derivative A contract whose value depends on another asset, rate or index, such as options, futures and swaps.
- Derivatives explained: forwards, futures, options and swaps What a derivative is, how the four basic contracts differ, notional value, hedging versus speculation, counterparty risk and clearing, with worked dollar examples.
- Expiration date The last day an option or futures contract is valid, after which it is exercised, settled or expires worthless.
- Futures contract A standardized exchange-traded agreement to buy or sell an asset at a set price on a future date, marked to market daily.
- Futures contracts explained: specs, clearing, expiry and settlement How a futures contract works: contract size and tick value, the clearinghouse, daily mark-to-market, expiry, and physical versus cash settlement, with CME examples.
- Futures margin and leverage: initial, maintenance and margin calls How futures margin works as a performance bond: initial and maintenance levels, daily variation margin, margin calls and leverage, worked through one crude contract.
- Futures roll Closing an expiring futures contract and opening one in a later month to keep a position, with the price gap as a cost or gain.
- Gold and precious metals: how gold is priced and what drives it How gold trades through futures, bullion funds and coins, its 26-year price record, and how its link to real interest rates held for 17 years and then broke.
- Open interest The number of option or futures contracts outstanding that have not yet been closed, exercised or expired.
- Underlying asset The stock, index, commodity, currency or other asset whose price determines the value of a derivative such as an option or futures contract.
Educational content, not investment advice. Finabase Learn explains how markets and tools work. It does not recommend any security or strategy, and examples are for illustration only. Investing involves risk, including the loss of principal. Rules and figures are for the United States unless stated and can change — check the cited source before you act.