5 Days Derivatives Trading and Strategy

Service Description

Day 1: Introduction to Financial Derivatives 1. Introduction to Financial Derivatives • Definition and significance of derivatives • Role in hedging and speculation 2. Types of Derivative Instruments • Futures, options, swaps, and forwards • Features and key characteristics of each instrument 3. Derivative Market Structure • Exchanges and over-the-counter markets • Clearinghouses and settlement processes 4. Participants in Derivative Markets • Hedgers, speculators, arbitrageurs • Regulatory authorities and their roles Day 2: Futures and Options 1. Understanding Futures Contracts • Features of futures contracts • Margin requirements and margin calls 2. Futures Trading Strategies • Speculation, hedging, and spread trading • Leveraging futures for portfolio management 3. Options Basics • Types of options (call and put options) • Option premium and intrinsic value 4. Options Strategies • Covered calls, protective puts, and straddles • Managing risk with options Day 3: Swaps and Risk Management 1. Introduction to Swaps • Types of swaps (interest rate, currency, credit) • Mechanics of interest rate swaps 2. Applications of Swaps • Hedging interest rate risk • Creating synthetic fixed or floating-rate exposures 3. Risk Assessment in Derivatives • Market risk, credit risk, and counterparty risk • Calculating Value at Risk (VaR) 4. Managing Risk with Derivatives • Hedging strategies and their effectiveness • Regulatory requirements for risk management Day 4: Derivative Valuation and Pricing 1. Valuing Derivative Contracts • Factors affecting derivative pricing • Arbitrage and the law of one price 2. Pricing Models • Black-Scholes-Merton model for options • Binomial option pricing model 3. Advanced Valuation Techniques • Monte Carlo simulation for complex derivatives • Pricing exotic options and structured products 4. Regulatory Compliance • Compliance with derivative market regulations • Reporting and documentation requirements Day 5: Advanced Strategies and Applications 1. Volatility Trading • Trading strategies based on implied and historical volatility • The role of VIX and other volatility indices 2. Derivatives in Portfolio Management • Portfolio optimisation with derivatives • Risk-parity and alternative risk management strategies 3. Real-world Case Studies • Analysing practical applications of derivatives • Lessons from historical derivative events 4. Course Recap and Q&A • Review of key concepts and strategies • Open discussion and participant questions