Introduction to Derivatives Course Overview
This introductory course on the topic of derivatives covers the fundamental knowledge you need to know about derivatives. You will learn to differentiate between forward, futures, options, and swaps contracts. You will also work on practical examples in Excel to calculate the profits/losses for each type of contracts. By the end of this course, you will have the essential knowledge about derivative contracts required to proceed to more advanced topics, such as derivatives pricing and trading.
Why Take This Introduction to Derivatives Course
This course covers the definition, purpose, and components of each of the four main types of derivatives. You'll look at real world examples of derivatives on Bloomberg terminal. Additionally, you'll work on example calculations in Excel to determine the profits/ losses generated from various types of derivatives. Upon completing this course, you should be comfortable explaining the differences between the types of derivatives and how they can be used for hedging and speculating purposes.
Major topics covered in this course include:
- Characteristics of derivative contracts
- Over-the-counter vs. exchange-traded
- Forward contracts
- Futures contracts
- Initial and maintenance margins
- Call and put options
- Moneyness (in-the-money, at-the-money, out-of-the-money)
- Swap contracts
Who Should Take This Course
This Introduction to Derivatives course is perfect for beginners or anyone who would like to build up their understanding about the capital markets. This course is designed to equip anyone who desire to begin a career in investment banking, sales and trading, treasury, or other areas of finance with the fundamental knowledge on derivatives.
About the Capital Markets & Securities Analyst (CMSA)™ Program
This Introduction to Derivatives course is part of CFI's upcoming Capital Markets & Securities Analyst (CMSA)™ Program. This program will cover all the basic, intermediate and advanced level topics about investment banking, sales and trading, and asset management. This program will teach you the trading strategies used in the finance and capital markets industry. It is ideal for students who want to learn how to trade different asset classes.
Students can sign up for updates and reserve a spot in the Capital Markets & Securities Analyst (CMSA)™ Program on the student dashboard.
What You'll Learn
What Our Students Say
It was exciting and encouraging to follow the lecturer and apply the formulas in the relevant excel sheet. Such interactive sessions should be more often.
Fantastic module. I would like to see a clearer example of valuing a future in MS Excel rather than the margin. Still, this is useful because you rarely get examples for margins.
Its a good course designed for students to get an introduction on stock market basics of derivatives and futures trading. Wishing all the best to CFI Team. - Sreeraj G Pai