This course focuses on foundational derivative products: futures and options. To start, we introduce you to what these products are and how they work, in general. We demonstrate the common features of all derivatives and their essential characteristics that differentiate them from other sorts of financial instruments. With this understood, the course will then segues into a detailed discussion:
Read more
This course focuses on foundational derivative products: futures and options. To start, we introduce you to what these products are and how they work, in general. We demonstrate the common features of all derivatives and their essential characteristics that differentiate them from other sorts of financial instruments. With this understood, the course will then segues into a detailed discussion:
This course focuses on foundational derivative products: futures and options. To start, we introduce you to what these products are and how they work, in general. We demonstrate the common features of all derivatives and their essential characteristics that differentiate them from other sorts of financial instruments. With this understood, the course will then segues into a detailed discussion:
First, about how futures contracts, and then
Second, on options contracts.
In each case, we explain clearly
The key characteristics and features of these derivative contracts;
How pricing works, including detailed examples and explanations;
What are the most common uses of futures and options in business
How risk can be managed (hedged) and taken (speculation).
This course is composed of 27 lectures within 6 sections:
Introduction to derivatives
Introduction to futures contracts
Futures contracts trading and cash flows
Futures pricing
Introduction to options
Option pricing and applications
This course is for you if you are involved in finance at a small, medium or large business; work in a financial institution of any type (retail bank, business bank, commercial bank, investment bank, hedge fund, family office, investment management firm, insurer and/or reinsurer).
More about this course and Starweaver
This course is led by a seasoned capital markets industry practitioner and executive with many years of hands-on, in-the-trenches financial markets sales, trading and analysis work. It has been designed, produced and delivered by Starweaver. Starweaver is one of the most highly regarded, well-established training providers in the World, providing training courses to many of the leading financial institutions and technology companies, including:
Ahli United Bank; Mashreqbank; American Express; ANZ Bank; ATT; Banco Votorantim; Bank of America; Bank of America Global Markets; Bank of America Private Bank; Barclay Bank; BMO Financial Group; BMO Financial Services; BNP Paribas; Boeing; Cigna; Citibank; Cognizant; Commerzbank; Credit Lyonnais/Calyon; Electrosonic; Farm Credit Administration; Fifth Third Bank; GENPACT; GEP Software; GLG Group; Hartford; HCL; HCL; Helaba; HSBC; HSBC Corporate Bank; HSBC India; HSBC Private Bank; Legal & General; National Australia Bank; Nomura Securities; PNC Financial Services Group; Quintiles; RAK Bank; Regions Bank; Royal Bank of Canada; Royal Bank of Scotland; Santander Corporate Bank; Tata Consultancy Services; Union Bank; ValueMomentum; Wells Fargo; Wells Fargo India Solutions; Westpac Corporate Bank; Wipro; and, many others.
Starweaver has and continues to deliver 1000s of live in person and online education for organizational training programs for new hires and induction, as well as mid-career and senior level immersion and leadership courses.
If you are looking for live streaming education or want to understand what courses might be best for you in technology or business, just google:
starweaver journey builder starweaver[dot]com
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What's inside
Learning objectives
- Develop and clear understanding of derivatives, including the building blocks of futures and options
- Define what derivatives are and differentiate between different types
- Explain the features of futures contracts, as well as trading and cash flows
- Describe the features of options and futures, including their contract terms and conditions, and pricing
- Apply futures and options in real business risk management (or speculation) circumstances
- Analyze the risks and benefits of using futures and options in risk management strategies.
- Determine the appropriate futures and options contracts and strike prices for different hedging, speculation, and arbitrage strategies.
- Evaluate the role of futures and options in portfolio construction and asset allocation strategies.
- Develop and clear understanding of derivatives, including the building blocks of futures and options
- Define what derivatives are and differentiate between different types
- Explain the features of futures contracts, as well as trading and cash flows
- Describe the features of options and futures, including their contract terms and conditions, and pricing
- Apply futures and options in real business risk management (or speculation) circumstances
- Analyze the risks and benefits of using futures and options in risk management strategies.
- Determine the appropriate futures and options contracts and strike prices for different hedging, speculation, and arbitrage strategies.
- Evaluate the role of futures and options in portfolio construction and asset allocation strategies.
Syllabus
Introduction to Derivatives
Just a brief "hello" and explanation for you.
In this module, you will learn about different types of derivative contracts and their characteristics.
Read more
Syllabus
Just a brief "hello" and explanation for you.
In this module, you will learn about different types of derivative contracts and their characteristics.
In this module, you will learn about how derivatives can be applied to securities to manage risk and gain exposure to certain assets.
In this module, you will learn about what derivatives are and how they relate to securities.
In this module, you will learn about futures terminology and contract features, including delivery dates, margin requirements, and settlement prices.
In this module, you will learn about the process of physically delivering the underlying asset in order to close a futures contract.
In this module, you will learn about cash settlement and OTC derivatives, including their characteristics and how they differ from futures contracts with physical delivery.
Learn about the role of a clearinghouse in futures markets and how third party contracts differ from traditional futures contracts in this module.
In this module, you will learn about futures margins and how they apply to contracts.
In this module, you will learn about the role of the clearinghouse in futures trades, including the process of settling futures contracts and managing margin requirements.
This module covers the differences between futures contracts and the underlying assets, as well as how to compare and analyze them.
In this module, you will learn about using futures contracts to hedge position cash flows and manage risk. We cover futures versus underlying positions, clearinghouse and futures trades, and futures margins and contracts.
This module covers how to manage risk and cost when taking futures positions.
This module covers the concept of carrying charges in futures contracts and how they impact the cost of holding a position.
This module covers the concept of the cost of carry in futures markets and how it affects the forward pricing curve.
This module includes an introduction to option fundamentals, including contract features and terminology.
In this module, you will learn about long call options and how they can be used in an options contract. We will cover the basics of this financial instrument, including its potential risks and rewards.
In this module, you will learn the fundamentals of option pricing, including how it is determined and the factors that can impact it. We will also discuss the Black-Scholes model and its role in option pricing.
In this module, you will learn about the concept of time value in options and how it relates to intrinsic value and moniness. We will discuss how these terms are used in the evaluation of options contracts.
This module includes a discussion of short option positions and how they can be used in options trading. You will learn about the potential risks and rewards of implementing short option positions in your portfolio.
In this module, we will cover the investment characteristics of options and how they differ from other financial instruments. You will learn about the benefits and drawbacks of using options in a portfolio.
This module provides an overview of long put, short call, and short put positions in options trading. You will learn about the potential risks and rewards of implementing these strategies in your portfolio.
In this module, you will learn about option pricing and the "Greeks," which are sensitivities that measure the impact of various factors on option prices. We will discuss how these concepts are used in the evaluation of options contracts.
This module covers option deltas, which measure the change in an option's price in relation to a change in the underlying asset's price. You will learn how to use deltas to make informed decisions about your options trades.
In this module, you will learn about delta hedging, a risk management strategy used in the financial markets.
This module covers the concept of delta natural hedging through the use of real-world examples.
In this module, you will learn about the Black-Scholes model and the concept of option volatility (vega).
This module includes lessons on implied volatility and volatility trading, completing the course.
Good to know
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Activities
Read Options, Futures, and Derivatives by John Hull
Show steps
Review a comprehensive book on the topic to gain foundational knowledge and reinforce understanding from the course.
View
Options, Futures, and Other Derivatives
on Amazon
Show steps
-
Read the book thoroughly, taking notes and highlighting key concepts.
-
Complete the practice problems and exercises at the end of each chapter.
Practice Hedging with Futures
Show steps
Practice applying futures contracts to manage risk and gain a deeper understanding of their functionality.
Show steps
-
Choose a commodity or asset to hedge.
-
Select the appropriate futures contract for your hedging strategy.
-
Determine the optimal position size and execution price.
-
Monitor the market conditions and adjust your position as needed.
Join a Study Group for Futures and Options Trading
Show steps
Connect with fellow learners, discuss course materials, share insights, and enhance your understanding through peer collaboration.
Show steps
-
Find or create a study group of individuals interested in futures and options trading.
-
Establish regular meeting times and discuss course materials, trading strategies, and market analysis.
-
Share ideas, support each other, and collectively improve your knowledge.
Five other activities
Expand to see all activities and additional details
Show all eight activities
Create a Trading Plan for Futures Trading
Show steps
Develop a comprehensive plan outlining your futures trading strategy, risk management parameters, and entry/exit criteria.
Show steps
-
Define your trading goals and objectives.
-
Identify the target market and assets to trade.
-
Establish risk management rules, including stop-loss levels and position sizing.
-
Develop entry and exit strategies based on technical analysis or fundamental factors.
-
Monitor and review your trading plan regularly to optimize performance.
Attend Webinars or Online Courses on Advanced Futures Trading Techniques
Show steps
Seek additional knowledge and refine your futures trading skills through structured webinars or online courses.
Show steps
-
Identify relevant webinars or online courses offered by reputable organizations.
-
Register and participate in the webinars or courses.
-
Take notes, ask questions, and apply the learned techniques to your own trading.
Conduct a Backtest on a Futures Trading Strategy
Show steps
Test the viability of a futures trading strategy by simulating historical market data and evaluating its performance.
Show steps
-
Choose the futures contract and timeframe for your backtest.
-
Gather historical data and create a trading simulation model.
-
Implement your trading strategy in the simulation model.
-
Run the simulation and collect performance metrics.
-
Analyze the results and refine your trading strategy as needed.
Create a Simulation Dashboard for Options Pricing
Show steps
Develop an interactive dashboard using a programming language such as Python or R, enabling the visualization and analysis of options pricing under different conditions.
Show steps
-
Gather data on options prices and underlying asset prices.
-
Implement the Black-Scholes model or other pricing models in your chosen programming language.
-
Create an interactive dashboard that allows users to adjust input parameters and visualize the impact on options pricing.
-
Document the dashboard functionality and usage.
Connect with Experienced Futures and Options Traders
Show steps
Seek guidance and advice from experienced professionals in the futures and options trading industry.
Show steps
-
Attend industry events or reach out to professionals through social media or networking platforms.
-
Build relationships and learn from their experiences, insights, and best practices.
Read Options, Futures, and Derivatives by John Hull
Show steps
Review a comprehensive book on the topic to gain foundational knowledge and reinforce understanding from the course.
View
Options, Futures, and Other Derivatives
on Amazon
Show steps
- Read the book thoroughly, taking notes and highlighting key concepts.
- Complete the practice problems and exercises at the end of each chapter.
Practice Hedging with Futures
Show steps
Practice applying futures contracts to manage risk and gain a deeper understanding of their functionality.
Show steps
- Choose a commodity or asset to hedge.
- Select the appropriate futures contract for your hedging strategy.
- Determine the optimal position size and execution price.
- Monitor the market conditions and adjust your position as needed.
Join a Study Group for Futures and Options Trading
Show steps
Connect with fellow learners, discuss course materials, share insights, and enhance your understanding through peer collaboration.
Show steps
- Find or create a study group of individuals interested in futures and options trading.
- Establish regular meeting times and discuss course materials, trading strategies, and market analysis.
- Share ideas, support each other, and collectively improve your knowledge.
Create a Trading Plan for Futures Trading
Show steps
Develop a comprehensive plan outlining your futures trading strategy, risk management parameters, and entry/exit criteria.
Show steps
- Define your trading goals and objectives.
- Identify the target market and assets to trade.
- Establish risk management rules, including stop-loss levels and position sizing.
- Develop entry and exit strategies based on technical analysis or fundamental factors.
- Monitor and review your trading plan regularly to optimize performance.
Attend Webinars or Online Courses on Advanced Futures Trading Techniques
Show steps
Seek additional knowledge and refine your futures trading skills through structured webinars or online courses.
Show steps
- Identify relevant webinars or online courses offered by reputable organizations.
- Register and participate in the webinars or courses.
- Take notes, ask questions, and apply the learned techniques to your own trading.
Conduct a Backtest on a Futures Trading Strategy
Show steps
Test the viability of a futures trading strategy by simulating historical market data and evaluating its performance.
Show steps
- Choose the futures contract and timeframe for your backtest.
- Gather historical data and create a trading simulation model.
- Implement your trading strategy in the simulation model.
- Run the simulation and collect performance metrics.
- Analyze the results and refine your trading strategy as needed.
Create a Simulation Dashboard for Options Pricing
Show steps
Develop an interactive dashboard using a programming language such as Python or R, enabling the visualization and analysis of options pricing under different conditions.
Show steps
- Gather data on options prices and underlying asset prices.
- Implement the Black-Scholes model or other pricing models in your chosen programming language.
- Create an interactive dashboard that allows users to adjust input parameters and visualize the impact on options pricing.
- Document the dashboard functionality and usage.
Connect with Experienced Futures and Options Traders
Show steps
Seek guidance and advice from experienced professionals in the futures and options trading industry.
Show steps
- Attend industry events or reach out to professionals through social media or networking platforms.
- Build relationships and learn from their experiences, insights, and best practices.
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