Course 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.
Do you work at this organisation and want to update this page?
Is there out-of-date information about your organisation or courses published here? Fill out this form to get in touch with us.
Upcoming start dates
Suitability - Who should attend?
Who Should Attend
Anyone working in the financial markets.
Prerequisites
None
Outcome / Qualification etc.
CPD: 7 hours
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
Training Course 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
- 💻 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
- 💻 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
- 💻 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
- 💻 Using options to enhance value
Credit Derivatives
- Principles and functions of credit derivatives
- The credit derivatives market
- Credit default swaps
- Market conventions
- CDS applications
- 💻 CDS application ideas
Why choose ACF Academy
Over 100,000 professionals trained globally
Award-winning practical financial simulations
Consistently high ratings
Customer Outreach Award
We believe that it should be easy for you to find and compare training courses.
Our Customer Outreach Award is presented to trusted providers who are excellent at responding to enquiries, making your search quicker, more efficient and easier, too.
Reviews
Average rating 5
Knowledgable instructor and excellent materials
Well-prepared and and well delivered.
Expenses
- London: £800 (plus VAT)
- New York: $995
- Virtual: £725 (plus VAT)
Very informative, gave me a good all-round understanding.