Trading of Derivatives Certification
About Trading of Derivatives
Trading of derivatives refers to the buying and selling of financial contracts that derive their value from an underlying asset. The most common types of derivatives are options and futures, which are used by traders to speculate on the future price movements of an underlying asset, such as a stock, commodity, currency, or index. Derivatives can also be used for hedging, which is a risk management strategy that involves offsetting potential losses in an underlying asset by taking an offsetting position in a derivative.
Trading derivatives is done on a variety of markets, including exchanges and over-the-counter (OTC) markets. These markets provide a platform for buyers and sellers to trade derivatives and offer a wide range of products and services, such as clearing and settlement. However, the trading of derivatives can be complex and carries a high level of risk, particularly for those who do not have a thorough understanding of the underlying assets and the markets in which they are traded.
Who should take the Trading of Derivatives Certification exam?
Individuals involved in finance, stock trading or those interested in financial derivatives market should take the Trading of Derivatives course.
Trading of Derivatives Certification Course Outline
Derivatives trading is the practice of buying and selling financial contracts, such as options and futures, whose value is derived from an underlying asset, such as a stock or commodity. A typical course on derivatives trading may cover the following topics:
Introduction to derivatives, including the types of derivatives, their uses, and the markets in which they trade.
Options trading, including how to buy and sell options, the mechanics of options pricing, and the strategies for using options to manage risk.
Futures trading, including how to buy and sell futures, the mechanics of futures pricing, and the strategies for using futures to manage risk.
Hedging and speculation, including how to use derivatives to hedge against market risk and how to use derivatives to speculate on market movements.
Risk management, including how to measure and manage the risks associated with derivatives trading, such as counterparty risk and market risk.
Trading platforms and tools, including how to use electronic trading platforms and tools, such as order management systems and risk management systems.
Advance topics like options and futures on commodities, options and futures on currencies, and options and futures on interest rates.
Regulations and compliance, including how to comply with regulatory requirements and best practices for managing legal and compliance risks.
Technical analysis and charting, including how to use technical indicators and charting tools to analyze market trends and make trading decisions.
Case studies and real-world examples of derivatives trading in action, including successful and unsuccessful strategies.