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Travel
Thinking of hopping on a plane to Paris? Euro futures help traders determine the value of the dollar compared to other currencies, which impacts how far your money will go on your trip. Airlines also use futures to cushion themselves against fluctuations in fuel prices — meaning they can continue offering flights to your destination of choice.
Student Loans
If you’re looking to borrow money on the road to your diploma, you might be glad to know that banks use futures to insulate themselves from swings in interest rates, making it easier for them to provide more loans to borrowers.
Found your dream home? By allowing banks to manage the risk of fluctuating interest rates, they’re able to lend money at a lower cost. They then can pass along those cost savings to homebuyers. Learn more about how mortgage prices are set here.
Futures Fundamentals is a premier educational resource, designed to help make complicated market topics simple through its wealth of content, including interactive infographics, a trading simulator and other materials.
Want to learn even more about derivatives, like futures and options, or explore how the market ticks?
Certain funds meant for investing for your golden years (like pensions or bond funds) use futures to insulate against fluctuations in their investment portfolios.
Retirement
Agriculture futures help ranchers and farmers manage potential expenses, like rising feed costs that could increase food prices, allowing you to enjoy your favorite restaurant without breaking the bank. Get more information about how futures impact what ends up on your plate here.
Food Prices
Mortgages
Why futures and options matter to you
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Learn more about how hedgers and speculators work in the market here.
A speculator doesn’t want to own the good or service being traded, but is willing to accept risk by trading futures – in hopes of making a profit when prices move.
Speculator
The hedger buys futures and options contracts to protect himself from price fluctuations in the future, like a construction planner who wants to ensure rising material costs won’t affect the final costs of a real estate project in development.
Hedger
Meet the players in the market
Do derivatives, like futures, have you scratching your head? Here’s what you need to know. A future is a binding contract that locks in the price of a product (like gas) or a financial instrument (like currency) in the future. Bottom line? Futures allow business owners and individuals to manage their risk – either by protecting themselves against fluctuating prices, or investing so they can benefit from those changes.
From interest rates on a mortgage to travel costs to food prices, futures can have a major impact on your money — whether you invest in them or not.
Want to do a deeper dive? Visit futuresfundamentals.org.
What you need to know about how derivatives, such as futures, affect your wallet
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