Foundations of Derivatives

  Foundation CPD: 7 hours   1 day   Live


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.



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

Dates and Locations

Date(s): 23 Nov 2021



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

   Note that the course fee of £930.00 already includes 20% VAT.


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