Chapter 13: Summary

Congratulations!

You have reached the end of the chapter 13 module, Futures Contracts.

In the Chapter 13 module, you have 

• Been introduced to the concepts and basics of futures contracts
• Examined the rationale and use of future contracts for suppliers and consumers of commodities 
• Discussed the use of future contracts in the financial world
• Explored the differences between hedging and speculating with future contracts
• Examined the potential enormous adverse consequences that can result from speculating with futures contracts

You should now be able to

1. Describe the rationale and use of futures contracts
2. Explain the uses of futures contracts for suppliers and consumers of commodities
3. Explain the uses of futures contracts in the financial and investment world
4. Describe the differences between hedging and speculating with futures contracts
5. Explain the potential enormous adverse consequences that can result from speculating with futures contracts

So are ya' gonna' stay far, far away from options and futures? I hope so! But wait, we are not yet finished learning how to lose a lot of money. In our next module, we will learn two more techniques designed to make your brokerage firm rich, ah, I mean, designed to help separate you from your money, no!, no!, I mean, designed to help you take advantage of other speculative strategies. We are ready to tackle buying on margin and selling short.