Course description
FX Options and Derivatives
Hedging and managing FX risk with vanilla and exotic contracts
Our two-day course covers a wide range of products and instruments within the FX Derivatives markets. Since a great majority of FX derivatives are traded OTC, many important differences exist between FX and derivatives in other asset classes. We’ll discuss these specifics, explore in great detail FX forwards and options and look into some exotic contracts and structured products.
This advanced course is aimed at those who have some understanding of FX markets and its key concepts. A basic level of derivatives knowledge is also recommended, although not required.
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Upcoming start dates
1 start date available
Suitability - Who should attend?
- Private traders and investors, looking to learn about FX derivatives markets.
- Professionals within the financial industry or those providing services to the financial sector.
- Professionals performing financial functions in non-financial industries, such as corporate treasury, accounting, and investor relations.
- Students, preparing for an upcoming internship or starting their careers in finance.
- Anyone working in or looking to understand how FX derivatives work.
Outcome / Qualification etc.
What will you learn?
By the end of the course, you will:
- Gain a solid understanding of FX options and futures and how they can be used to manage FX exposure.
- Explore how global corporations use FX derivatives to manage their FX transactions.
- Understand the unique risks that arise with FX options and how they can be measured.
- Learn why FX volatility is quoted in terms of butterflies and risk-reversals.
- Appreciate some important specifics that arise when trading OTC derivatives.
- Find out about different strategies to hedge FX risk and how these can be obtained at zero cost.
- Recognize the impact of foreign and domestic interest rates on the performance of FX derivatives.
- Understand the sticky strike and sticky delta volatility smile models and their limitations.
- Learn about FX structured products and how a typical deal is constructed.
- Become confident when dealing with FX derivatives.
- And much more!
What will you get upon completion?
- Formal completion certificate.
- Course notes and materials.
- Follow-up support – ability to ask questions and seek further clarification, if needed.
- 20% OFF any future courses you wish to attend.
Training Course Content
Day 1:
- Overview of Financial Derivatives:
- Users of financial derivatives.
- Types of derivative products.
- Open interest and volume.
- Listed and OTC trading.
- Derivatives settlement procedures.
- FX Forwards:
- Mechanics of a forward contract.
- Cost of carry and fair value.
- Foreign and domestic interest rates.
- Forward rates.
- Hedging and speculating using FX forward contracts.
- Non-deliverable forward (NDF).
- FX Options:
- Calls and puts.
- Selling and buying of options.
- In-the-money (ITM), At-the-money (ATM) and Out-of-the-money (OTM) options.
- Motivation behind using options.
- Put-call parity and option arbitrage.
- FX option premium conventions.
- Option Pricing:
- Intrinsic and time value.
- Black-Scholes framework.
- Delta hedging.
- Pricing European and American options.
- Realized volatility and implied volatility.
- Risk-reversals, butterflys and at-the-money vols.
- Sticky strike and sticky delta.
- FX Option Risks and Greeks:
- Delta.
- Gamma.
- Vega.
- Domestic and foreign Rho.
- Theta.
- Volga and Vanna.
- Aega, Rega and Sega.
- Hedging of the risks.
Day 2:
- FX Option Structures:
- Straddles and strangles.
- Butterfly.
- Collar and risk reversal.
- Call and put spreads.
- Condors and seagulls.
- Light Exotic Options:
- Barrier options.
- Knock-in/out options.
- Digital and binary options.
- Quanto options.
- Asian contracts.
- FX Strategies:
- Participating forward.
- Bonus forward.
- Enhanced collar.
- Forward extra.
- Delayed premium options.
- FX Structures Notes:
- Options as a note contract.
- Dual Currency Deposit (DCD).
- Target Redemption Forward (TARF).
- Capital Protected Basket (CPB).
- Basket FX options.
- Structuring a client deal.
Reviews
Average rating 5
Based on 1 reviews.
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27 Nov 2019
Makes The Complex World Of Finance Very Clear
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Amazing training! Sergei does a great job at explaining the concepts using simple analogies which makes the complex world of finance very clear.