Derivatives Fundamentals

Derivatives Fundamentals Course Overview

This introductory course on the topic of derivatives covers the fundamental knowledge you need to know about derivatives. You will learn to differentiate between forward, futures, options, and swaps contracts. You will also work on practical examples in Excel to calculate the profits/losses for each type of contract. By the end of this course, you will have the essential knowledge about derivative contracts required to proceed to more advanced topics, such as derivatives pricing and trading.

Why take this Derivatives Fundamentals course?

This course covers the definition, purpose, and components of each of the four main types of derivatives. You’ll look at real-world examples of derivatives on the Refinitiv terminal. Additionally, you’ll work on example calculations in Excel to determine the profits/ losses generated from various derivatives. Upon completing this course, you should be comfortable explaining the differences between the types of derivatives and how they can be used for hedging and speculating purposes.

Major topics covered in this course include:

• Characteristics of derivative contracts
• Over-the-counter vs. exchange-traded
• Forward contracts
• Futures contracts
• Initial and maintenance margins
• Call and put options
• Moneyness (in-the-money, at-the-money, out-of-the-money)
• Swap contracts

Derivatives Fundamentals is a required 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 Introductory derivatives course is perfect for anyone who would like to build up their understanding of capital markets. This course is designed to equip anyone who desires to begin a career in fixed income, equity, sales, trading, or other areas of finance with the fundamental knowledge of derivatives.