Foundations of Derivatives

  Foundation CPD: 7 hours   1 day   Live


The Foundations of Derivatives course de-mystifies the world of derivatives, explaining what derivatives are, and how they can be used by a wide range of users to solve real-world financial problems.

Learning Outcomes

Foundations of Derivatives

By attending this course, you will:

  • Review the range of derivative products, and the uses to which they can be put
  • Explore how clients use derivatives to mitigate equity, interest rate, FX, and credit risks
  • Examine how derivatives can also be used to enhance value and increment yield
  • Gain first-hand experience of each topic through workshops and case studies

Who Should Attend

Anyone working in the financial markets.



Seminar Content

Introduction to Derivatives
  • What are derivatives?
  • Derivative building blocks: forwards and futures, swaps, and options
  • Derivatives as a hedging tool
  • Derivatives as a speculative tool
  • Derivatives as a structuring tool
  • Derivatives across markets – FX, equities, rates, commodities, and credit
Forward Markets
  • Why is there a need for forward contracts?
  • Principles of forward pricing
  • The FX forward market
  • computer Using FX forwards to avoid currency risk
Financial Futures
  • Definitions and terminology
  • How futures differ from OTC products
  • Standardisation of contracts
  • Overview of interest-rate, bond, stock-index, and currency contracts
  • Physical delivery vs. cash settlement
  • How margining systems work
  • A brief insight into cash and carry pricing
  • computer Using bond and stock index futures for tactical asset allocation
Interest Rate, Currency, and Equity Swaps
  • The concept of a swap
  • Definitions and terminology
  • Interest rate swaps
  • Currency swaps
  • Equity swaps
  • Central counterparties
  • Swap execution facilities (SEFs)
  • Swap applications
  • computer Fixing investment returns
  • Why options are different
  • Options concepts and terminology
  • The importance of time value
  • Value and profit profiles
  • An intuitive insight into option pricing
  • What volatility means
Using Stock Options
  • Bull and bear strategies
  • Price enhancement
  • Price protection
  • computer Using options to enhance value
Credit Derivatives
  • Principles and functions of credit derivatives
  • The credit derivatives market
  • Credit default swaps
  • Market conventions
  • CDS applications
  • computer CDS application ideas

When and Where
   13 Jun 2024
   New York

Other Dates and Locations
Search for Foundations of Derivatives in our course schedule for alternative dates and locations where this course is offered.

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