Chapter 7 The Structure of Forward and Futures Markets 衍生工具与风险管理课件.ppt

D. M. Chance An Introduction to Derivatives and Risk Management, 6th ed. Chapter 7: The Structure of Forward and Futures Markets It is like watching your favorite soap opera. You know all the characters. You know the plot. But you never really know how the day is going to end. Turk Ozdek Futures, July 2001, p. 86 Important Concepts in Chapter 8 Definitions and examples of forward and futures contracts Institutional characteristics of forward and futures markets Futures contracts available for trading Placing an order, margins, daily settlement The role of the clearinghouse Accessing futures price quotations Magnitude and effects of transaction costs The Development of Forward and Futures Markets Chicago Futures Markets The Development of Financial Futures The Development of Options on Futures Markets The Parallel Development of Over-the-Counter Markets interbank market growth of forward markets Organized Futures Trading Contract Development Contract Terms and Conditions contract size quotation unit minimum price fluctuation contract grade trading hours Delivery Terms delivery date and time delivery or cash settlement Organized Futures Trading (continued) Daily Price Limits and Trading Halts limit moves circuit breakers Other Exchange Responsibilities minimum financial responsibility requirements position limits rules governing the trading floor Futures Exchanges See Table 8.1, p. 279 for list of exchanges. Global and after-hours trading Estimated world-wide volume in 2001 was 1.8 billion contracts. Futures Traders General Classes of Futures Traders futures commission merchants locals dual trading Classification by Trading Strategy hedger/speculator spreader arbitrageur Futures Traders (continued) Classification by Trading Style scalpers day traders position traders Off-Floor Futures Traders individuals institutions Others: Introducing Broker (IB), Commodity Trading Advisor (CTA), Commodity Pool Operator (CPO), Associated Person (AP) Futures Traders (continued)