Foundation Programs
Financial Derivatives & Risk Management-Currency & Interest Rates
ABSTRACT
Financial Derivatives is multi trillion dollar market and is vast & complex considering the variations in the product, underlying and regulatory environment. Risk Management is incomplete without having an in depth understanding of each product from practical perspective.
OBJECTIVES
The objective of the course is to enable attendees to
- To have an in depth understanding of financial derivatives on variety of underlying.
- To use derivatives for hedging, trading and arbitrage.
- To manage risks of financial derivatives
- To have broad knowledge of the regulatory framework for financial derivatives.
- To understand valuations and various components which impact pricing of derivatives.
- To understand practical concepts and implications of derivatives.
COURSE CONTENTS
| 1. Financial derivatives – An Introduction | 2. Forward market and products |
|---|
- Derivative markets
- Past and present
- Difference between exchange traded and OTC derivatives
- Derivative instruments
- Concept and definition
- Purpose and criticism
- Basics about forwards, futures, options and swaps
- Hedgers, arbitrageurs and speculators
| - Structure and role of global forward market
- Concept, characteristics and definition
- Valuation of Foreign Exchange forward contract
- Hedging using forwards
- Trading using forwards
- Time Option in Forwards
- Forward Booking, cancellation & rebooking
- Forward limit setup procedure in OTC
- Practical Concepts in Forward Market on Currencies
- What is forward premium/discount in a currency pair?
- What moves forward premium/discount in a currency pair
- Impact of forward premium on exchange rates
- Interlinkage of forward premium with call money market and liquidity situation in a country
- Do forward premium in a currency pair indicate outlook on Interest Rate of country?
- Trading in forward premium
- Cross Currency Forwards
- View based Forward calculations
- NDF and Arbitrage opportunities
- Bloomberg / Reuters Screenshot of Forward Markets and their interpretation
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- Structure and role of global future market including leading future Exchanges
- Concept, characteristics and definition
- Trading mechanism and concept of margins (IM, MTM, MM)
- Future vs. forward
- Types of future contracts
- Stock future
- Index future
- Currency future
- Interest rate future
- Commodity future
- Valuation of future
- Generic valuation principles-cost of carry model
- Valuation of individual future product
- Daily settlement price and Final settlement price
- Hedging
- Arbitrage
- Speculations
- Practical Concepts in Futures Market
- How to detect probable trends in Futures Market using basis differential
- Open Interest and volume data of futures market.
- Structure and role of global option market including OTC and leading option exchanges
- Concept, characteristics and definition
- Option terminologies
- Call option
- Put option
- American and European option
- Option writer and buyer
- Option premium including intrinsic value and time value
- Strike price
- ITM, ATM and OTM
- Option payoff
- Future vs. option
- Types of options
- Stock option
- Index option
- Currency option
- Commodity option
- Options on futures
- Interest rate options
- Rules of Options as per RBI Guidelines
- Valuations of options
- Factors affecting option valuation
- Binomial model (portfolio replicating and risk neutral approach
- BSOPM
- Theoretical Option strategies (spreads, straddles and strangles)
- Practical Concepts and Example of Options Market
- Strategies adopted by Indian / Global Corporates to hedge exposures through Options and best practices
- Range forward
- Range extra
- Leveraged forward
| 3. Future Markets and products | 4. Option market and products |
|---|
- Risk Management
- Positives of derivative instruments
- Learning from derivative mishaps
- Derivatives Risk Management
- Market Risk
- Credit Risk
- Liquidity Risk
- Operational Risk
- Enterprise Risk
- VAR
- Regulatory framework for derivatives
- Regulations governing derivatives
- Sweeping reforms in Derivative market in US and its global impact
- Guidelines of Country’s regulators
- International Swaps and Derivatives Association Master Agreement:
- Role played by ISDA agreement during Global Financial crisis
- Importance of ISDA after global financial crisis
- Concept of Credit Support Annex and Global Collateral
| 5. Risk Management and Regulations |
|---|
Training fees & Duration for students, corporates, universities
- The fees for the program is INR 25000.
- The duration of the course is approx. 40 hours. We have special pricing for corporates and universities; for more information Contact us
- Classes are normally held over weekends (Normally Sundays and each Sunday approx. 4 to 5 hours)
Freebies (Add ons) with the program include:
- Marketconnected’s “The Turtle Trend Broadcast” on different portfolios- Equity Model, Forex Model and Macro Model is provided during the progress of the course and 1 month after the completion of the course. Such broadcasts have over 10,000 readers and subscribers at different levels working with reputed organizations including Reliance Group companies, Indian Oil, L&T, Tata Group Companies, Bharti Airtel, Private & Nationalised Banks and others.
- Since the classes are held over weekends (normally every Sundays), the participants can have hands on experience in applying such learnings on Live markets during the weekdays and come back with their doubts in the classrooms. Such process continues for approx. Two Months.
- Complete handholding and back office support from Team MarketConnected on the designing of derivative strategies for 1 month after the completion of the course is available.
- Upon clearing necessary exams, Certification of becoming a “MarketConnected Turtle” on the said course is awarded which is issued by Chitkara Financial Education Center in collaboration with Brand Partner-BSE and Knowledge Delivery Partner-MarketConnected. Sample Certificate.
Exam Format
Participants have to appear for the final exam which is conducted by Chitkara Financial Education Center at the end of the module to obtain the certification. A participant has to score a minimum of 70% marks. The exam questions consist of Class room performances, Virtual Trading performances and Case study based analytical questions. There is no negative marking for wrong answers.
Financial Derivatives & Technical Analysis-Equity
ABSTRACT
Technical Analysis is more than a century old concept. The techniques and tools to do Technical Analysis keep evolving and new tools keep getting invented with an assumption that this would resolve the mystery behind predicting markets. However, selection of right technical indicator based on the market environment is the key to success in trading. Every technical indicator has its pros and cons and there is no one universal indicator which works for every market.
OBJECTIVE
The objective of this training is to provide attendees with an in-depth understanding of variety of Technical Indicators along with their pros and cons. After attending this course, the attendee would be in a position to comprehend the wide variety of technical indicators and apply them in trading.
COURSE CONTENTS
| 1. Introduction | 2. Introduction to Base of Derivatives |
|---|
- Technical Analysis
- Fundamental analysis
- Fundamental Analysis vs. Technical Analysis
- Cash & Derivatives Market
- Futures & Options
| - Actual Market & Notional Market
- Buying vs. Long & Selling vs. Short
- Concept of Stop Loss & Target Profit
- Futures & Options
|
| 3. Introduction to Futures | 4. Types of Options & Option Strategies & their practical implications |
|---|
- Futures Advantages & Disadvantages
- MTM Positioning & Margin Monies
- Views on Future Trades
| - Put Option: Buy Put & Buy Put
- Call Option: Buy Call & Sell Call
- Long & Short Straddle
- Long & Short Strangle
- Butterfly
- Covered Call
- Protective Put
- Views on Option Trades
|
| 5. Types of Technical charts | 6. Types of Technical charts- Related Concepts |
|---|
- Line Chart
- Bar Chart
- Candle Stick
| - Demand Zone-Support
- Supply Zone-Resistance
- Types of Trends along with Live chart examples
- Uptrend
- Downtrend
- Sideways / Consolidation
|
| 7. Reversal patterns: | 8. Continuation Patterns: |
|---|
Head and Shoulders (H&S), Inverse H&S, Double Top, Double Bottom, Triple Top, Triple bottom, rising wedge, falling wedge- Concept and power of each Reversal Pattern
- Live charts of each reversal pattern
- Do reversal patterns fail?
- When not to initiate trade based on reversal patterns?
- High probability trade setup using reversal patterns along with “CANDO” system
| Symmetrical Triangle, Ascending Triangle, Descending triangle, Flags & pennants- Concept and power of each Continuation Pattern
- Live charts of each reversal pattern
- Do reversal patterns fail?
- When not to initiate trade based on Continuation patterns?
- High probability trade setup using Continuation patterns along with “CANDO” system
|
| 9. Type of Candlestick patterns |
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Doji, Hammer, Shooting Star, Morning Star, Evening Star, Bullish Engulfing pattern & Bearish Engulfing pattern. wedge- Concept and power of each Candlestick Patterns
- Live charts of each Candlestick patterns
- Do reversal patterns fail?
- When not to initiate trade based on Candlestick patterns?
- High probability trade setup using Candlestick patterns along with “CANDO” system
|
Training fees & Duration for students, corporates, universities
- The fees for the program is INR 15000.
- The duration of the course is approx. 25 hours. We have special pricing for corporates and universities; for more information Contact us
- Classes are normally held over weekends (Normally Sundays and each Sunday approx. 4 to 5 hours)
Freebies (Add ons) with the program include:
- Marketconnected’s “The Turtle Trend Broadcast” on different portfolios- Equity Model, Forex Model and Macro Model is provided during the progress of the course and for 1 month after the completion of the course. Such broadcasts have over 10,000 readers and subscribers at different levels working with reputed organizations including Reliance Group companies, Indian Oil, L&T, Tata Group Companies, Bharti Airtel, Private & Nationalised Banks and others
- Since the classes are held over weekends (normally every Sundays), the participants can have hands on experience in applying such learnings on Live markets during the weekdays and come back with their doubts in the classrooms. Such process continues for approx. One Month.
- Complete handholding and back office support from Team MarketConnected on the charting techniques for 1 month after the completion of the course is available.
- Upon clearing necessary exams, Certification of becoming a “MarketConnected Turtle” on the said course is awarded which is issued by Chitkara Financial Education Center in collaboration with Brand Partner-BSE and Knowledge Delivery Partner-MarketConnected. Sample Certificate.
Exam Format
Participants have to appear for the final exam which is conducted by Chitkara Financial Education Center at the end of the module to obtain the certification. A participant has to score a minimum of 70% marks. The exam questions consist of Class room performances, Virtual Trading performances and Case study based analytical questions. There is no negative marking for wrong answers.
