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Short courses>Futures & options on futures

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Futures & options on futures - 2.5 hours

A foundation course that explains how futures work, what is being traded, how the contracts are priced and simple hedging and trading strategies.

There is also an introduction to options on futures contracts.

It is suitable for those working in or around financial markets who need to know more.

There are simple examples with time for questions and answers.

This course is only available in-house and is suitable for up to 12 people.

This is what is covered:

  • What a futures contract is
  • Standard contracts
  • The role of the exchange and why trades are cleared
  • The importance of initial and variation margins
  • The futures price, the cost of carry and the basis
  • Short term interest rate futures
  • Unit of trading, quotation, price changes, delivery months
  • What happens to futures prices when interest rates change
  • How traders trade the yield curve using these contracts
  • How traders can hedge interest rate risk with these contracts
  • Bond futures, the notional contract
  • Linking the cash and futures market by delivery
  • Cost of carry and conversion factors
  • Unit of trading, quotation, price changes, delivery months
  • Trading and hedging example
  • Type of futures contract – rates, bonds, commodities, metals
  • Options on bond futures – introduction and example

Enquire or book this course

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