Equity Markets & Derivatives - An Introduction: VIRTUAL DELIVERY

This course provides an insight into the equity derivative markets, it compares and contrasts the use of the derivative products to the cash markets. The course starts with an overview of the equity cash markets, the factors affecting equity prices and examines the concept of short selling before exploring the world of the exchange traded and Over-The-Counter derivative products such as equity futures, swaps and options.

- Case studies and illustrations are used to demonstrate the product applications
- No prior knowledge or experience is required

Course Objectives
- To provide an understanding of the price quotations and what factors move equity prices
- To explain the concepts of short selling and the market risk
- Compare and contrast the use of equity derivatives to the cash markets and why they are used as well as or in place of cash instruments
- Explore how equity futures and swaps are used by market participants and the mechanics and differences between the two products

This virtual course is one of the ICE Education LIVE programs. We provide two phases to the course:

1. Live Virtual Sessions: Trainer led live video sessions (as per the outline below). These are short focused sessions with practical activity and interaction throughout.
2. Post-course: On-demand content remains available and an optional live video clinic session is scheduled for one week post course for any learning points you'd like to revisit.
All course payments must be received one day prior to the start date

Course Information

Price £895 + VAT
Duration 1 day
Location Virtual
Available Dates

Who Should Attend

As the title suggests, this course is aimed at (currently) non-traders with little or no existing knowledge of this subject area

Booking Information

Tel: +44 (0) 20 7065 7706

Course Content

Session 1: Equity Cash Markets

  • What is equity and why trade equity

o Factors affecting equity prices

o How prices are quoted -the bid/offer spread and liquidity

  • Mechanics of short selling

o How and why short sales are used

o Understanding the mechanics and risk profile

Session 2: Equity Derivatives

  • What is a derivative?

o Definition of a derivative

o Differentiating derivatives from traditional cash market products

o Derivative execution -how they are traded: exchange traded vs. OTC

o The role of the Intercontinental Exchange (ICE)

o From exchange platforms to market data handling

Session 3: Fundamentals of Equity Index Futures

  • Definition of a futures contract
  • Understanding the contract -contract definitions and mechanics
  • Why trade futures and how they differ from equity cash products
  • The concept of margin and leverage

o Why the need for a margin and how it works initial and maintenance margins

  • Trade applications

o Directional trading (long/short positions) and portfolio hedging applications

Session 4: Fundamentals of Equity Swaps

  • Terminology and characteristics of equity swaps
  • Why use equity swaps and how they differ from exchange traded futures

o Cash flows and mechanics

o Principle users of swaps and how they use the product

o Equity swap applications -taking long and short positions

Session 5: Fundamentals of Equity Options

  • Options fundamentals and terminology

o Why use options?

o Characteristics of calls and puts -understanding the payoff profile and market direction

o Option styles -American vs. European options

  • The vanilla trading strategies -Long call, short call -long put, short put