Financial Derivatives Trading - London Academy of Trading

Financial Derivatives Trading

This module is designed for learners to develop an understanding of derivatives in the form of forwards, futures, options, swaps, collateralized debt obligations and credit default swaps. This is achieved through an explanation of the basic techniques of pricing and trading before progressing to focus on the applications of these techniques for speculation and risk management.

Module Contents

  • Forwards, futures, options, swaps, collateralized debt obligations and credit default swaps
  • Put and call options, payoff diagrams and basic options strategies
  • Forward Rate Agreements (FRAs) and their uses in financial markets
  • Applying forwards and swaps to achieve specific targets
  • Credit derivatives and their uses within different financial scenarios

Learning Objectives

  • Analyse the structure of futures markets and how they are traded
  • Understand the concepts of options trading, including put and call options
  • Design different option strategies and create corresponding payoff profiles
  • Construct and trade different options strategies in real-time markets
  • Calculate potential profit, loss and breakeven on various options positions
  • Integrate the use of Forward Rate Agreements (FRA) in various financial scenarios
  • Critically evaluate the construction of swaps and apply them to different financial scenarios
  • Describe credit derivatives and define their suitability in different investment scenarios
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