This course builds on the Intro to Futures course and specifically covers the equity futures markets. The course will begin by defining various equity index futures products, both in the United States and globally, including features and characteristics and where they trade. This is followed by an examination into the way in which equity futures are used to speculate or hedge an equity portfolio. Beta is defined and its role in hedging with futures is explored. This will be followed with an in-depth examination of how futures are used by portfolio managers to hedge market risk in existing equity portfolios and how they can hedge anticipatory cash inflows or outflows. Single stock futures are defined and examined.

Objectives

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

• Define the various global equity index futures products
• Explain how equity index futures are used in hedging and speculating
• Define beta and examine how beta is used to hedge market risk
• Calculate the number of futures contracts required for an appropriate hedge
• Define and explore the application of single stock futures
• Identify Bloomberg pages that market practitioners use

This course is designed for

• Equity portfolio managers
• People supporting an equity portfolio