OpenCourser brand icon
Sign in
We may earn an affiliate commission when you visit our partners.
Course image
Course image
edX logo

Derivatives, Futures, Swaps, and Options

Jack Farmer and Chris Thomas

This course begins with an overview of derivatives where we'll cover the global derivatives market players and understand the usage of derivatives.

We'll also cover treasury futures and understand margin and margin requirements in this course before moving on to a look at the characteristics and features of swaps.

We'll learn the fundamentals of pricing interest rate swaps and be able to apply interest rate swaps to hedging situations.

We'll wrap up this course with a review of various option terminologies and understanding of swaptions.

Read more

This course begins with an overview of derivatives where we'll cover the global derivatives market players and understand the usage of derivatives.

We'll also cover treasury futures and understand margin and margin requirements in this course before moving on to a look at the characteristics and features of swaps.

We'll learn the fundamentals of pricing interest rate swaps and be able to apply interest rate swaps to hedging situations.

We'll wrap up this course with a review of various option terminologies and understanding of swaptions.

This course is part 4 of the New York Institute of Finance's Capital Markets Professional Certificate.

Enroll now

What's inside

Learning objectives

  • Introduction to derivatives
  • Overview offutures and forwards
  • Introduction to swaps and options

Syllabus

M01: Introduction to Derivatives
M02:Futures and Forwards
M03:Swaps
M04:Options
Read more

Traffic lights

Read about what's good
what should give you pause
and possible dealbreakers
Connects derivatives to their global market players and explores their practical usage
Teaches margin and margin requirements of treasury futures
Gives learners a foundation for pricing and applying interest rate swaps for hedging
Provides an overview of the many types of swaps, their characteristics, and their features
Introduces learners to swaptions and their uses
Provides resources in a format that is common to professional certificate programs

Save this course

Create your own learning path. Save this course to your list so you can find it easily later.
Save

Reviews summary

Foundational guide to financial derivatives

According to learners, this course offers an excellent overview of derivatives, including futures, swaps, and options, delivered with clear and concise explanations of complex topics. Students frequently praise the instructor's expertise and the inclusion of practical examples and real-world applications, which are highly valued by finance professionals. While providing a strong conceptual foundation, some learners noted it acts more as an introduction than a deep dive, potentially lacking advanced mathematical rigor for those seeking it. Complete beginners might find the pacing somewhat fast, suggesting it's best for those with a foundational finance background.
Instructor's expertise and professional delivery were praised.
"The instructor explains complex concepts simply..."
"The instructor's expertise shines through, making even dry topics engaging."
"The instructor does a great job explaining the 'why' behind these instruments."
"Instructor is top-notch, highly experienced."
Focuses on real-world usage and hedging strategies.
"I found the practical examples extremely helpful in understanding how these instruments are used in real-world scenarios."
"The real-world applications discussed were invaluable. A must-take for finance professionals."
"The course provides a strong conceptual framework, aligning well with what I see in my work."
"The real-world examples and hedging strategies are gold."
Complex concepts are presented simply and precisely.
"The instructor explains complex concepts simply, making them accessible even for those new to the field."
"The explanations are precise, and the real-world applications discussed were invaluable."
"The material is presented in an easy-to-digest format."
"The course demystifies complex derivatives."
Better suited for informed beginners than absolute novices.
"The pace felt a bit too fast for me as a complete beginner, and some concepts were introduced without enough foundational background."
"Might be better for someone with a finance background already."
"Good for absolute beginners, perhaps less so for intermediate learners."
Provides an excellent overview but lacks advanced depth.
"I felt some parts, especially on options, could have gone into more depth or provided more advanced strategies."
"I expected more rigorous mathematical derivations or case studies. It feels more like an overview than a deep dive."
"For a Capital Markets Professional Certificate course, I anticipated more depth and quantitative analysis."
"The course felt a little light on the mathematical rigor, which is essential for true understanding."

Activities

Be better prepared before your course. Deepen your understanding during and after it. Supplement your coursework and achieve mastery of the topics covered in Derivatives, Futures, Swaps, and Options with these activities:
Review different option terminologies
Options and swaptions are complex topics. Reviewing different terminologies will help you understand the concepts and prepare you for the course.
Browse courses on Swaptions
Show steps
  • Define key option terminologies, such as call, put, strike price, and expiration date
  • Explain the relationship between options and futures contracts
Learn about different types of swaps
Swaps are a complex but important topic in derivatives. Watching tutorials on different types of swaps will help you grasp the concepts.
Browse courses on Swaps
Show steps
  • Review different types of swaps, such as interest rate swaps, currency swaps, and commodity swaps
  • Explain the key features and benefits of each type of swap
  • Identify the different markets where swaps are traded
Calculate margin and margin requirements
Calculating margin and margin requirements are essential skills in derivatives markets. Practicing these calculations will improve your understanding.
Show steps
  • Calculate initial margin for a treasury futures contract
  • Calculate variation margin for a treasury futures contract
  • Explain the impact of margin calls on derivatives positions
One other activity
Expand to see all activities and additional details
Show all four activities
Contribute to open source projects related to derivatives
If you wish to gain practical knowledge and experience with derivatives, contribute to open source projects in the field. This will allow you to apply your knowledge and to interact with other experienced professionals.
Show steps
  • Identify open source projects related to derivatives
  • Review the documentation and codebase of the chosen project
  • Identify areas where you can contribute your skills and knowledge
  • Make a pull request to the project
  • Review feedback and make necessary revisions

Career center

Learners who complete Derivatives, Futures, Swaps, and Options will develop knowledge and skills that may be useful to these careers:
Quantitative Analyst
Quantitative Analysts leverage mathematical and statistical techniques to model and analyze financial data. This course on Derivatives, Futures, Swaps, and Options will be valuable to you in this career because it will help build a foundation in the financial derivatives market.
See salaries and explore the career path for Quantitative Analyst
Risk Manager
Risk Managers are responsible for identifying, assessing, and mitigating financial risks faced by an organization. This course includes an overview of derivatives, treasury futures, swaps, and options. Having this knowledge will be helpful as a Risk Manager.
See salaries and explore the career path for Risk Manager
Portfolio Manager
Portfolio Managers oversee the investment portfolios of individuals or organizations to achieve financial goals. This course will help you do this by providing an overview of derivatives, futures, forwards, swaps, and options.
See salaries and explore the career path for Portfolio Manager
Financial Analyst
Financial Analysts conduct financial research and make recommendations on investments. This course in Derivatives, Futures, Swaps, and Options will help you in this role by providing an overview of the global derivatives market players and the usage of derivatives.
See salaries and explore the career path for Financial Analyst
Derivatives Trader
Derivatives Traders buy and sell financial derivatives contracts to speculate on price movements or to hedge against risk. As a Derivatives Trader, it will be helpful to understand the fundamentals of pricing interest rate swaps and be able to apply interest rate swaps to hedging situations.
See salaries and explore the career path for Derivatives Trader
Investment Banker
Investment Bankers help companies raise capital and provide financial advice. This course can provide a helpful overview of derivatives, futures, swaps, and options which are commonly used in the financial industry.
See salaries and explore the career path for Investment Banker
Hedge Fund Manager
Hedge Fund Managers manage investment funds that use advanced investment strategies to generate high returns. This course may be useful to you in this career as it provides an overview of derivatives, futures, forwards, swaps, and options.
See salaries and explore the career path for Hedge Fund Manager
Corporate Treasurer
Corporate Treasurers are responsible for managing the financial resources of a company. This course will help you do this by teaching the fundamentals of pricing interest rate swaps and how to apply interest rate swaps to hedging situations.
See salaries and explore the career path for Corporate Treasurer
Financial Planner
Financial Planners provide individuals and families with financial advice and planning services. This course may be useful as it provides an overview of derivatives, futures, forwards, swaps, and options.
See salaries and explore the career path for Financial Planner
Actuary
Actuaries analyze financial data and use mathematical and statistical techniques to assess risks and make predictions. This course can help someone in this career by providing an overview of derivatives, futures, forwards, swaps, and options.
See salaries and explore the career path for Actuary
Insurance Underwriter
Insurance Underwriters assess risks and determine insurance premiums for individuals and businesses. This course can help in this job by providing a review of various option terminologies and understanding of swaptions.
See salaries and explore the career path for Insurance Underwriter
Auditor
Auditors examine and evaluate financial records to ensure accuracy and compliance. This course will help you do this by providing an overview of derivatives, futures, forwards, swaps, and options.
See salaries and explore the career path for Auditor
Credit Analyst
Credit Analysts assess the creditworthiness of individuals and businesses to determine their ability to repay loans. This course may be useful as it provides an overview of derivatives, futures, forwards, swaps, and options.
See salaries and explore the career path for Credit Analyst
Economist
Economists study economic trends and make predictions about the economy. This course may be useful as it provides an overview of derivatives, futures, forwards, swaps, and options.
See salaries and explore the career path for Economist
Financial Consultant
Financial Consultants provide financial advice and planning services to individuals and businesses. This course provides an overview of derivatives, futures, swaps, and options which can be useful to a Financial Consultant.
See salaries and explore the career path for Financial Consultant

Reading list

We've selected 13 books that we think will supplement your learning. Use these to develop background knowledge, enrich your coursework, and gain a deeper understanding of the topics covered in Derivatives, Futures, Swaps, and Options.
Cover image
Foundations of the Pricing of Financial Derivatives
Save
Widely used reference book on options, which covers the pricing of options as well as options trading strategies. It valuable companion to the course, particularly for learners who wish to pursue more advanced topics and techniques in options.
Foundations of the Pricing of Financial Derivatives...
Kindle Edition
$$$
Cover image
Intermediate Futures And Options: An Active...
Save
This comprehensive textbook covers a wide range of topics related to futures, options, and swaps, providing detailed explanations and practical examples. It valuable resource for learners seeking a thorough understanding of these instruments.
Intermediate Futures and Options: An Active...
Paperback
$$$
Cover image
Interest Rate Swaps and Their Derivatives
Save
This practical guide provides a comprehensive overview of swaps, their applications, and risk management techniques. It valuable resource for professionals and learners seeking to gain a practical understanding of swaps.
Interest Rate Swaps and Their Derivatives: A...
Hardcover
$$
(中文) Interest Rate Swaps and Their Derivatives: A...
Paperback
$$
Interest Rate Swaps and Their Derivatives: A...
Kindle Edition
$$$
Cover image
More Mathematical Finance
Save
This textbook provides a comprehensive overview of mathematical finance, covering a wide range of topics relevant to derivatives, such as stochastic calculus, option pricing, and risk management. It valuable resource for learners seeking a deep understanding of the mathematical underpinnings of derivatives.
More Mathematical Finance
Hardcover
$$$
Cover image
Intermediate Accounting, Volume 2
Save
Provides a comprehensive overview of the derivatives market, covering both theory and practice. It valuable reference for learners who seek a deeper understanding of the fundamental principles of derivatives.
Intermediate Accounting, Volume 2
Loose Leaf
$$
Intermediate Accounting, Volume 2, WileyPLUS Card...
Paperback
$$$$
Study Guide to accompany Intermediate Accounting,...
Paperback
$$
Cover image
Risk Management and Financial Institutions
Save
This textbook covers a wide range of risk management topics, including the use of derivatives for hedging and speculation. It provides a comprehensive understanding of risk management principles and practices.
Risk Management and Financial Institutions (Wiley...
Hardcover
$$$
Risk Management and Financial Institutions (Wiley...
Kindle Edition
$$$
Cover image
The Handbook of Fixed Income Securities, Ninth...
Save
This handbook provides a comprehensive reference on fixed income securities, including derivatives used in this market. It valuable resource for learners seeking in-depth knowledge of fixed income instruments and their applications.
The Handbook of Fixed Income Securities, Ninth...
Hardcover
$$$$
The Handbook of Fixed Income Securities, Ninth...
Kindle Edition
$$$$
Cover image
Financial Theory with Python
Save
Combines theoretical concepts with practical Python implementations for derivatives analytics. It valuable resource for learners seeking to develop their programming skills in this domain.
Financial Theory with Python: A Gentle Introduction
Paperback
$$
Financial Theory with Python
Kindle Edition
$$
Cover image
Introduction to the Economics and Mathematics of...
Save
This textbook provides a mathematical and economic foundation for understanding financial markets. It covers topics relevant to derivatives, such as probability, stochastic processes, and optimization.
Introduction to the Economics and Mathematics of...
Hardcover
$$$
Solutions Manual for Introduction to the Economics...
Paperback
$$
Cover image
Financial Calculus
Save
Introduces the mathematical tools used in derivative pricing, including calculus, probability, and stochastic processes. It valuable resource for learners seeking to develop a strong mathematical foundation for derivatives.
Financial Calculus: An Introduction to Derivative...
Hardcover
$$$
Financial Calculus: An Introduction to Derivative...
Kindle Edition
$$$
Cover image
Risk Models and Their Estimation
Save
Provides a rigorous treatment of the theory of interest, which underlies the pricing and valuation of many derivatives. It valuable resource for learners seeking a deep understanding of the mathematical foundations of derivatives.
Risk Models and Their Estimation
Paperback
Check
Risk Models and Their Estimation
Kindle Edition
Check
Cover image
Interest Rate Models - Theory and Practice
Save
This advanced textbook delves deeply into the mathematical and financial models underlying derivatives. While it may be challenging for some learners, it is an excellent resource for those seeking a more technical understanding of the subject matter.
Interest Rate Models - Theory and Practice: With...
Hardcover
$$$$
Interest Rate Models - Theory and Practice: With...
Kindle Edition
$$$$
Cover image
Options as a Strategic Investment
Save
Offers practical insights into using options as investment tools. While it may not directly align with the course's focus on derivatives markets, it provides valuable knowledge for learners interested in applying options strategies in their investments.
Options as a Strategic Investment by Lawrence G....
Hardcover
$$$
Study Guide for Options as a Strategic Investment...
Paperback
$$
Options as a Strategic Investment
Hardcover
$$$$
Options as a Strategic Investment, Third Edition
Hardcover
$$
Options As a Strategic Investment (4th Edition...
Paperback
$$
Options as a strategic investment: A comprehensive...
Hardcover
$$
Options As a Strategic Investment: A Comprehensive...
Hardcover
$$
(Español) Options as a Strategic Investment,5th...
Paperback
$$$
Options as a Strategic Investment, Third Edition by...
Hardcover
$$$$

Share

Help others find this course page by sharing it with your friends and followers:
Facebook
LinkedIn
Reddit
X
Link
Email

Similar courses

Here are nine courses similar to Derivatives, Futures, Swaps, and Options.
Pricing Options with Mathematical Models
Most relevant
Calculus through Data & Modeling: Limits & Derivatives
Most relevant
Introduction to Calculus
Most relevant
Global Financial Markets and Instruments
Most relevant
Quantitative Foundations for International Business
Most relevant
Calculus: Single Variable Part 3 - Integration
Most relevant
Capital Markets: Analyze, Evaluate & Invest
Most relevant
Economics of Money and Banking
Most relevant
Statistics and Calculus Methods for Data Analysis
Most relevant

edX Buyer Protection & Guarantee

Verified partner policies & purchase protections

World-Class University Partner
Free Trial & Audit

Free Audit Track Available

Free audit track available for most courses, giving open access to video lectures, course readings, and assignments at no charge.

Return & Refund Policy

14-Day Full Refund Window

14-day full refund available up to 14 days after course start or 14 days after payment (whichever comes second, up to 6 months max), provided verified certificate has not yet been earned.

Buyer Protections

Verified Academic & Industry Partner

University-backed credentials authored by elite institutions like Harvard, MIT, and Oxford, with tamper-proof certificate verification.

Key Purchase Protections
Free audit track for open learning access
14-day money-back guarantee on verified certificates
Prestigious university credentials (Harvard, MIT)
Automatic unenrollment refund process via dashboard
OpenCourser Verified Partner Policy details last reviewed: 2026-10-22
Course image
Effort
1 to 2 hours per week for 6 weeks
Level
Introductory
Via
edX
Institution
New York Institute of Finance
Instructors
Jack Farmer
Chris Thomas
Language
English
Transcript
English
This course belongs to a collection called Capital Markets. It's comprised of six courses:
  1. Equity Indexes, Valuations, and Investment Vehicles
  2. Bond and Equity Markets and Financial Regulation
  3. Capital Markets Professional Certificate Examination
  4. Credit Derivatives and Equity and Bond IPO
  5. Money Markets, Foreign Exchange and Time Value of Money
  6. Derivatives, Futures, Swaps, and Options (viewing)
Traffic lights
Read about what's good
what should give you pause
and possible dealbreakers
Connects derivatives to their global market players and explores their practical usage
Teaches margin and margin requirements of treasury futures
Gives learners a foundation for pricing and applying interest rate swaps for hedging
Provides an overview of the many types of swaps, their characteristics, and their features
Introduces learners to swaptions and their uses
Provides resources in a format that is common to professional certificate programs
Share this
Share to help others discover this course.
Facebook LinkedIn X Reddit Link Email
Begin learning today
Enroll now to gain full access to Derivatives, Futures, Swaps, and Options.
Enroll now
Save for later
Add this course to your list. Find it anytime.
Save
Our mission

OpenCourser helps millions of learners each year. People visit us to learn workspace skills, ace their exams, and nurture their curiosity.

Our extensive catalog contains over 50,000 courses and twice as many books. Browse by search, by topic, or even by career interests. We'll match you to the right resources quickly.

Find this site helpful? Tell a friend about us.

Affiliate disclosure

We're supported by our community of learners. When you purchase or subscribe to courses and programs or purchase books, we may earn a commission from our partners.

Your purchases help us maintain our catalog and keep our servers humming without ads.

Thank you for supporting OpenCourser.

© 2016 - 2025 OpenCourser