Market Mechanics

What a derivative is, where contracts trade, how clearing and margin work, and why forwards and futures settle differently.

What this track covers

1. 01
   What is a derivative?
   The two-party contract pricing a future state.
   9 min
2. 02
   Exchange vs OTC
   Where contracts live and who guarantees them.
   11 min
3. 03
   Clearing & margin
   Daily mark-to-market replaces counterparty risk with cash flow.
   12 min
4. 04
   Forwards
   The OTC bilateral contract.
   9 min
5. 05
   Futures mechanics
   Tick size, contract size, last-trading day, what the desk quotes.
   11 min
6. Quiz
   Quiz · Markets check
   10 questions on contracts, exchanges, clearing, forwards and settlement.
   8 min

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