The Basic Concepts of Buying and Selling in the United States Futures Market
Alisha Luymes
College Bound English
Mr. Putnam
December 22, 2008
Outline
I. Introduction
A. Attention Getter
B. Thesis: People enjoy selling and buying commodities within the futures market as a risky hobby or career, but in order to complete this task successfully and make a profit, one must go through the long, demanding process of learning the vital concepts within the market.
II. History of the Futures Market
A. Origin
B. CFTC Act of 1974
III. Entering the Futures Market
A. Trade One’s Own Account
B. Open a Managed Account
C. Join a Commodity Pool
IV. Discussion of How the Futures Markets Works and Who Utilizes Them
A. Hedgers
B. Speculators
V. Discussion of a Futures Contract and a Forward Contract
A. Basis
B. Margin
C. Going Long or Short
1. Profit
2. Loss
3. Leverage
VI. Discussion of Different Spreads
A. Calendar Spread
B. Inter-Market Spread
C. Inter-Exchange Spread
VII. Regulating Agencies
A. CFTC
B. NFA
VIII. Economic Importance of the Futures Market
A. Price Discovery
B. Risk Reduction
C. Discussion of Why the Futures Market Will Continue to be Important
IX. Conclusion
A. Summary of Main Points
B. Thesis: Once one has learned these vital concepts about the futures market, he or she will be able to successfully make a profit by buying and selling commodities in the futures market as a leisure activity or a full-time occupation.
Is it common for people to contemplate ways to make money in a quick manner? Of course, this is a very common thought that crosses people’s minds on a regular basis. People participate in several different activities to acquire money quickly, one of them being the purchasing or selling of contracts in a futures market. This activity began...