Introduction to Forwards and Futures

Price: $995   Register now

Course Features

  • Course Code: 501
  • Certificate: Yes
  • CPE Credits: 7
  • Level: Beginner
  • Prerequisites: None
  • Method: Live & Virtual
  • Venue: MicroTek
  • Time: 9:00 am – 5:00 pm
  • Registration: 8:30 am
  • Dress Code: Business Casual

INTRODUCTION TO FORWARDS and FUTURES

This one-day intensive course covers all aspects of forward contracts and the futures markets.  Among the topics covered are a quick review of pricing of forwards / futures contracts, comparing the similarities and difference between the two, and risk management and trading applications of forwards and futures.

  • Derivatives
    • General Definition of a Derivative
    • Derivative Uses
      • Speculator
      • Hedger
      • Market Maker
      • Arbitrageur
    • Derivative versus Spot Trading
  • Forward Contracts
    • Basic Characteristics
    • Counterpart Risk
    • OTC Regulatory Changes since 2008
      • Swap Execution Facilities
      • OTC Margin Requirements
  • Futures Contracts
    • Basic Characteristics
    • Mark to Market Settlement
    • Centrally Cleared
    • Margin Requirements
    • Cash versus Physical Settlement
  • Forward versus Futures Contacts

TRADE/POSITION COMPARISON DERIVATIVE TO EQUIVALENT SECURITY

  • Forward Agreements
    • Physical Commodity
    • Fixed Income
    • Equity Index
    • Currencies
  • Futures Markets
    • Fixed Income
    • Equity Index
    • Currencies
    • Energy
    • Metals
    • Agricultural Markets

UNDERLYING AND FUTURES/FORWARD CONTRACT PRICING

  • Cost of Carry Arbitrage Pricing
    • Cost of holding a long position in underlying
      • Physical Costs
      • Financial Costs
    • Impact of positive versus negative carry
  • Contract Value / Pricing
    • Pricing models
    • Arbitrage Models

FUTURES TRADING APPLICATIONS

  • Fixed Income
  • Equity Index
  • Currencies
  • Energy
  • Metals
  • Agricultural

 

RISK MANAGEMENT WITH USE OF FUTURES AND FORWARDS

  • Hedging Considerations
    • Overview of hedging fundamentals
    • Short hedges, long hedges and cross hedges
    • The basis  and basis risk
    • Risk and return of hedged versus unhedged positions
    • Basic hedging examples
    • Complication encountered when hedging with financial futures

Instructor

  • Russell joined TABB Group in July 2018 after almost a decade at Cboe Global Markets where he finished his time there as the Director of Education at The Cboe Options Institute. His career before joining Cboe included positions at a variety of firms including Highland Capital Management, Caldwell & Orkin Investment Counsel, Balyasny Asset Management, …
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