Barings, Societe Generale, AIG, JP Morgan...venerable Financial Institutions damaged, some to the point of bankruptcy, by unauthorised Derivatives trading activity. In each case it was not Trader inexperience that was the problem, but supervision & Risk Management. These short programs, designed for those who are new to finance and for those who may be involved with Derivatives products for the first time, offer an insight into the practical applications of these much misunderstood Financial tools.
Learning Outcomes
By attending this course, participants will be able to appreciate the links between the underlying 'Cash' Markets & their respective Derivative Markets. As Financial instruments they have been around for longer than you might think. Trading volumes in today's fast moving fully electronic Markets are now dominated by highly liquid Derivative instruments. Therefore, understanding exactly how they work is key to fully appreciating the Financial news headlines.
Introduction To The Derivatives Markets: Part 1 (24 July 2-3 pm)
The origins of Derivatives. What are they exactly, who uses them & why?
Exchange Traded vs Over the Counter instruments – A changing world. Central Counterparties
Vanilla vs Exotic derivatives; Cash vs Physical settlement
Inherent risks with Derivatives - what could possibly go wrong?
Introduction To The Derivatives Markets: Part 2 (28 July 2-3pm)
Options defined & terminology
The asymmetry of risk; Intrinsic vs Time Value
In, at and out of the money options
Credit Default Swaps – A tool for Bond Fund Managers
Futures – Referencing the underlying Markets (from Equities to Commodities)
Initial & Variation Margin; Leverage, Function of the Clearing House
Bookings are made using the link below. Please email ci-pd@bpp.com with any queries.
