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Motivation for the futures exchange | Finance & Capital Markets | Khan Academy

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Published on Mar 21, 2011

How an exchange can benefit from trading futures and how it can use margin to mitigate its risk. Created by Sal Khan.

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Finance and capital markets on Khan Academy: In many commodities markets, it is very helpful for buyers or sellers to lock-in future prices. This is what both forwards and futures allow for. This tutorial explains how they work and what the difference is between the two.

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