This course is designed to introduce the participant to the futures and forwards markets. Specifically, this course introduces the features, characteristics, and differences between the two markets. An overview of the basic applications of these products is explored. Margin requirements and the settlement process for the futures markets are investigated.

Objectives

By the end of the course, the participant will be able to:

• Differentiate between a futures and a forward contract
• Explain the features and characteristics of futures and forwards
• Understand the mechanics of a futures contract, including margin maintenance and the role of the clearing house
• Distinguish between open interest and volume and explain their importance
• Breakdown the main product categories of futures: Commodities, fixed income, equity and currency
• Derive the fair value price of a futures contract
• Use futures and forwards for speculation and hedging
• Identify the different risks associated with these products
• Describe a cash-futures arbitrage
• Identify Bloomberg pages that market practitioners use

This course is designed for

• People joining a futures trading operation
• People entering the field of portfolio or risk management