Foundations of Derivatives

  Foundation CPD: 7 hours   2 half-days   Virtual

Description

Foundations of Derivatives

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

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.

Prerequisites

None

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
Options
  • 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
Virtual Learning

Dates and Locations

Date
Date(s): 10 Aug 2020 - 11 Aug 2020

Times:
a.m. sessions – 08:00 to 12:00 (for Asia / EMEA participants)
p.m. sessions – 13:00 to 17:00  (for EMEA / Americas participants)
All times are BST (London time)

Location
Virtual

Category
Derivatives

Other Dates and Locations
Check our course schedule for alternative dates and locations where this course is offered.


   If you live outside the UK, use coupon code VCNOVAT to remove the VAT charge.

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