Overview
Equity, FX, and Rate Futures Course Overview
This course focuses on currency futures, equity index futures, and interest rate futures and forwards. The course provides insight into key concepts such as cross rates, triangular arbitrage, and currency swaps. You will also learn how to calculate the fair value of equity index futures and use these instruments to hedge a position. By the end of the course, you will also have an understanding of forward rate agreements (FRAs), short-term interest rate futures (STIRs), interest rate swaps (IRS), and the relationship between spot rates and forward rates.
Equity, FX, and Rate Futures Learning Objectives
Upon completing this course, you will be able to:
- Identify triangular arbitrage opportunities by calculating cross rates
- Understand how to use equity index futures to hedge a position
- Describe the relationship between spot rates and forward rates
- Explain FRAs, STIRs, and IRS
- Understand currency futures, equity index futures, and interest rate futures
Equity, FX, and Rate Futures 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 Equity, FX, and Rate Futures course is ideal for anyone looking to enhance their understanding of futures and forwards. It is designed to benefit students and professionals looking to begin a career in derivatives trading or for anyone interested in learning more about the space.
Get Recognized With CFI
See All Certification ProgramsWhat you'll learn
Lesson
Multimedia
Exams
Files
Currency Futures Contracts
Exchange Rates Reminder
Free Preview
Cross Rates and Triangular Arbitrage
Free Preview
Triangular Arbitrage Steps
Cross Rate Examples
Forward Exchange Swap
Forward Exchange Swap - Example
Interactive Exercise 1
Foreign Currency Futures - Example
Bid Offer in FX
Buying and Selling Currency Futures - Example
What Is a Currency Swap
Currency Swap - Example
Currency Swap Stages
Managing Currency and Interest Rate Risk
FX Forwards - Example
FX Forwards - Example Continued
Forward Price Formula
Quoting Forward Rates
Interactive Exercise 2
Equity Index Futures Contracts
Individual Equity Futures – Example
Index Futures – Example
Index Futures Contract Sizes
Index Futures Contract Profit - Example
Interactive Exercise 3
Calculating the Fair Value of an Equity Index Future
Fair Value of Index Futures - Q1
Index Arbitrage
Index Futures Calculations
Simple Hedge Ratio
Hedge Outcome
Interest Rate Futures and Forward Contracts
Spot Rates vs. Forward Rates
2x5 FRA Example
Series of FRAs
STIR Futures Contracts
Futures Codes
STIR Future - Example
FRA vs. Futures Contracts
Creating a Forward Rate
Forward Spot Interest Rate - Answer
Interest Rate Swap - Example
Interactive Exercise 4
Bond Futures
Notional Coupon
Deliverable List and Price Factors
Price Factor
Course Outro
Qualified Assessment
This Course is Part of the Following Programs
Why stop here? Expand your skills and show your expertise with the professional certifications, specializations, and CPE credits you’re already on your way to earning.
All Capital Markets & Securities Analyst (CMSA)® Courses
- Skills Learned Trading strategies used in the finance and capital markets
- Career Prep Work in capital markets, whether on the buy-side or the sell-side
What our students say
Most practical and informative finance course
As a person who has been working in the financial industry near a decade, I would say CFI is the art of revealing the applicable dimension of highly academic knowledge in finance. My experience with CMSA has been beyond my expectation. I am so grateful for this opportunity to learn from the professionals. Thank you CFI team
As a person who has been working in the financial industry near a decade, I would say CFI is the art of revealing the applicable dimension of highly academic knowledge in finance. My experience with CMSA has been beyond my expectation. I am so grateful for this opportunity to learn from the professionals. Thank you CFI team
Ali Mortazavi
Good Course
Great knowledge
Great knowledge
Michael Li-Seabrooks
K
K
K
SUMIT KUMAR SRIVASTAVA
Very good lecturer
This course requires a firm understanding of maths, but the lecturer explains very step very precisely.
This course requires a firm understanding of maths, but the lecturer explains very step very precisely.
