Advanced Futures & Forwards Course Overview
This Advanced Futures & Forwards course teaches the importance of basis, hedging, and trading with futures and forwards. You will learn about the factors influencing basis, as well as various components of bond futures including cheapest-to-deliver (CTD) bonds, repos vs. reverse repos, and how to calculate implied repo rates. You will also learn how to hedge CTD and non-CTD bonds, and how to adjust duration using futures. After completing this course, you will have a better understanding of LIBOR alternatives (ESTR, SOFR, SONIA, etc.), exchange delivery settlement price (EDSP), and spread (basis) trading with futures.
- Futures & Forwards Pricing – Review
- Understanding Basis
- Bond Futures – Basis Risk
- Futures Hedge – Basis Risk
- Refining the Hedge
- Spread (Basis) Trading With Futures
Advanced Futures & Forwards Learning Objectives
Upon completing this course, you will be able to:
- Explain basis and factors which influence it
- Identify basis risk within futures and bonds
- Calculate implied repo rates
- Determine how to hedge CTD and non-CTD bonds
- Interpret LIBOR alternatives (ESTR, SOFR, SONIA, etc.)
Advanced Futures & Forwards Is an Elective Course of CFI’s CMSA® Program
CFI’s Capital Markets & Securities Analyst (CMSA)® program covers all the basic, intermediate, and advanced topics about sales and trading, investment banking, and asset management. This program teaches you trading strategies used in the finance and capital markets industry. It is ideal for students who want to learn how to trade different asset classes. The program is completely online, so you can take it at your own pace from anywhere in the world.
Common career paths for students who take the CMSA® are sales & trading, asset management, wealth management, treasury, risk management, and other capital markets careers.
Who Should Take This CMSA® Course?
This Advanced Futures & Forwards course is ideal for any student or professional interested in gaining a better understanding of the futures and forwards markets. Whether you are interested in derivatives or not, this course provides the key learning objectives required to become familiar with these complex tools.