Overview of Derivatives
- Derivatives are essentially bets placed on the direction or volatility of physical and financial assets, such as shares, bonds, commodities etc
- These instruments initially started trading in financial markets several decades ago, and now they are commonly used by both institutions and individual investors
- Types of derivatives: forwards, futures, options, and swaps
20-Minute Overview of Futures
- The history of futures
- What future contracts involve The life cycle of future contracts
- Various future contracts
- How futures are traded and applied
20-Minute Overview of Options
- An option is a contract that gives its owner the right to buy or to sell a specified quantity of an asset (e.g. a share or a bond), at a specified price, for a limited period of time
- An option that gives the right to buy is called a "call option", while an option that gives the right to sell is called a "put option"
- The party buying the option contract is called the "owner" or the "holder"
- The party selling the option contract is called the "writer"
- The option holder has the right but not the obligation to exercise the option
20-Minute Overview of FRAs
- What is a FRA?
- What are the motivations and positions of a FRA buyer and a FRA seller
- How is the FRA settled
- How are FRA rates calculated How are FRAs traded in the market What are the risks due to FRAs
20-Minute Overview of Swaps
- What are swaps
- Swaps applications
- The swaps market
- How swaps are valued
- The risks due to swaps
20-Minute Overview of Credit Derivatives
- Credit derivatives are contracts that allow market professionals to trade protection from reference credits between themselves
- Motivations for Protection Buyers and Protection Sellers
- Most important credit derivatives structures and their applications
Click here to view the Inmarkets Finance library