Demystifying Derivatives

This course provides students with foundational insights into the use of derivatives in trading and risk management, while also demystifying the jargon and functioning of this dynamic market.

The program begins with an introduction to the major categories of derivatives and their common as well as unique characteristics, then contrasts derivatives with other types of financial instruments. The presentation next addresses in turn the three broad categories of derivative instruments: futures/forwards; options; and swaps. Within each category the discussion will focus initially on contract features, basic concepts, terms and definitions. Risk/reward trade offs of long and short positions will be addressed for each type of derivatives well as an introduction to basic pricing and valuation issues.

These ideas are then brought together with real-world illustrations of speculative and risk management applications as employed by portfolio managers, dealers, proprietary trading desks and hedge funds.

12-Aug-2013 -- 12-Aug-2013New YorkUSD$1575
NY Institute of Finance - Midtown9:00am - 4:30pm Instructional Method:
Group-Live
Instructor(s): [ Douglas Carroll; ] Mon Level: Basic

CPE CREDITS
7.0
Anyone who has ever asked ''What are derivative products?''; Anyone whose daily job brings them into contact with derivative users and would like to have a broader understanding. Asset Managers, Trading Assistants, Sales Assistants, Compliance Managers.
No advance preparation required.
Students will be able to:
  • Define derivative market participants
  • Identify the primary product areas: futures/forwards, options & swaps.
  • Describe the ways in which each user group uses each derivative product
  • Translate their own market opinion or market risk into a derivative strategy which fits those needs
Basic capital market concepts: how & why corporations raise money (debt or equity) and who trades those products in the market.
  • Derivative Products in a Dodd Frank World- Evening
  • Derivative Products I
  • Derivative Products I & II Suite - Intensive
  • Derivatives Program: Strategies, Trading & Valuation
    • Financial Planning and Fixed Income
    Market Participants
    • Corporations (borrowers of money)
    • Banks & Asset Managers (lenders of money)
    • Speculators
    • Arbitrageurs

    The Derivative Products

    • Futures & Forwards
    • Options
    • Swaps

    Uses & Applications

    • Why each market participant would use futures/forwards, options & swaps
    • How each market participants would use futures/forwards, options & swaps
    • Strategy selection - comparing and contrasting choice
    • Our own strategy selection: we'll design a strategy as a group based on our own market opinion

    Clients who register for this course will receive a complimentary 4-month subscription to FT.com. The Financial Times is the world's most respected financial newspaper, providing a broad assessment on finance, business and the industrial sector. The move to the electronic version follows an ongoing review of our environmental responsibilities as a global business and as part of the Pearson group. FT.com also has features that are not available in hard copy, such as: Special Reports, Alphaville, editor blogs, education sections and much more! Subscriptions will start within 6-8 weeks of the start of class and are limited to one subscription per client. (Please note: as of May 1, 2011, the electronic subscription replaces the hard-copy 3-month Financial Times subscription.)

    Lunch is included for all students taking day classes.