Derivatives: Characteristics & Markets

Course Description

Derivatives are complex financial instruments that can be used effectively to hedge positions and reduce risk. Because of the large monetary value and high leveraging of these instruments, the derivatives market is mostly limited to specialists. It is therefore often difficult to understand how derivatives and their markets function.

The objective of this course is to provide participants with an introduction to derivatives and their markets, both on exchanges and over-the-counter. The course covers futures, forward contracts, options and swaps and how their markets function. No previous knowledge of derivatives is necessary.

Learning Objectives

By the end of the course, delegates will have a good understanding of

• the different types of derivatives and their characteristics

• the major derivatives markets and how they operate

• differences between exchange-based and over-the-counter derivatives

• pricing of derivatives

• clearing and settlement procedures for derivatives transactions

• the risks associated with derivatives and their use

• how derivatives are used to improve portfolio performance

Target Audience

Anyone working in financial services who needs to understand derivatives.

Duration

1 day for up to 12 participants