Course description
Fundamentals of Futures & Options (applicable to Series 3 Exam)
This instructor-led virtual course includes lecture from an engaging instructor with real-world expertise and supported by class discussion, practice exercises and educational materials. The course fee includes two must-read industry books - Futures and Options and the Guide to U.S. Futures Regulation. This course is well-suited for those preparing for the Series 3 Exam - the National Commodities Futures Examination - which is basic proficiency standards for industry professionals.
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Suitability - Who should attend?
Who Should Attend
Anyone requiring an in-depth understanding of futures and options markets, their institutions and their participants.
- Prospective and new markets users
- Commercial commodity producers and suppliers
- Companies that provide financial, energy, industrial and food products
- Asset managers
- Pension fund managers
- Corporates
- Legal and compliance staff
- Support and IT staff
- Exchange personnel
Outcome / Qualification etc.
Learning Outcome
After the course you will be able to:
- Describe trading and uses of futures and be able compare and contrast futures to securities and cash market products.
- Understand futures trading theory, basic functions, characteristics, pricing and terminology.
- Interpret problems faced by those who are either long or short the market and understand how using listed contracts alleviates those problems by calculation of profit or loss with/without futures implementation.
- Explain the principles of margins, offset, settlement.
- Understand the strategy used in different order types.
- Describe the nature of “basis risk” and how it may impact normally robust hedging results.
- Describe the nature of future spreads as “relative positions”.
- Identify the principles of hedging and cash-futures price relationships as well as the importance of the basis.
- Understand the use of futures to hedge exposure to an underlying commodity or to speculate on a future price.
- Enumerate the uses of stock-indexes, foreign exchange, energy, metals and other futures-based commodities.
- Understand options nomenclature including premiums, exercise, assignment and settlement.
- Describe option price determinants of option price and how they affect the option premium.
- Understand use of option spreads to focus on a given market forecast; implementing vertical spread, horizontal spread, straddle, strangles, butterfly and condor strategies.
- Compare futures and options on futures as risk management tools.
- Understand portfolio management strategies and tactics using various futures and options products to modify the risk characteristics of a given portfolio.
Training Course Content
After the course you will be able to:
- Describe trading and uses of futures and be able compare and contrast futures to securities and cash market products
- Understand futures trading theory, basic functions, characteristics, pricing and terminology
- Interpret problems faced by those who are either long or short the market and understand how using listed contracts alleviates those problems by calculation of profit or loss with/without futures implementation
- Explain the principles of margins, offset, settlement
- Understand the strategy used in different order types
- Describe the nature of “basis risk” and how it may impact normally robust hedging results
- Describe the nature of future spreads as “relative positions”
- Identify the principles of hedging and cash-futures price relationships as well as the importance of the basis
- Understand the use of futures to hedge exposure to an underlying commodity or to speculate on a future price
- Enumerate the uses of stock-indexes, foreign exchange, energy, metals and other futures-based commodities
- Understand options nomenclature including premiums, exercise, assignment and settlement
- Describe option price determinants of option price and how they affect the option premium
- Understand use of option spreads to focus on a given market forecast; implementing vertical spread, horizontal spread, straddle, strangles, butterfly and condor strategies
- Compare futures and options on futures as risk management tools
- Understand portfolio management strategies and tactics using various futures and options products to modify the risk characteristics of a given portfolio
Course delivery details
Live-instruction online for 2 hours per day on five (5) consecutive days. This allows attendees the flexibility to fit education into their work day. IFM's live course offers the benefit of a live education — including the ability to interact with other attendees and our knowledgeable faculty — without the travel expense or days away from work.
Why choose The Institute for Financial Markets
Nonprofit educational foundation founded that offers top-quality education at the lowest cost
Qualified instructors who have real world working experience at major films and regulatory agencies
IFM instructors are passionate to share the knowledge gained from real world working experience at major firms and regulatory bodies
Reviews
Average rating 4.9
Instructor was fantastic. Open to questions and answers not only from their content but also on general questions on markets.
Would recommend because it helps and walks you through a lot of things that we are going to face in the exam.
Great instructor, good use of time. Very knowledgeable about the subject matter.