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Certificate in Derivatives Trading

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Derivatives Trading


About Derivatives Trading

Short-term financial instruments having a set expiration date are known as derivatives trading. Stocks, commodities, money, indexes, exchange rates, and even interest rates can serve as the underlying asset. The market is used in derivative trading to purchase and sell these financial contracts.

Why is Derivatives Trading important?

For trading purposes, derivatives are favored over underlying assets because they provide more leverage, more liquidity, and cheaper costs as overall transaction costs are lower than those of the spot market.

Derivatives provide essential roles such as risk mitigation through hedging, guaranteeing market efficiency, discovering transaction prices for the underlying asset, etc. Risk transfer, risk diversification, risk allocation, and risk neutralization are methods for reducing risk.

Who should take the Derivatives Trading Exam?

  • Trader And Analyst
  • Derivatives Trader
  • Business developers
  • Product Marketing Manager
  • Options Trader
  • Risk Analyst
  • Research Analyst

Derivatives Trading Certification Course Outline

  1. Introduction to Derivatives
  2. Financial Derivatives
  3. Introduction to Options
  4. Equity Options
  5. Equity Future
  6. Currency Option
  7. Currency Features
  8. Options Strategies
  9. Options Strategies & Pricing
  10. Trading Strategies

Certificate in Derivatives Trading FAQs

• Students and graduates

• Financial analysts 

• Investors

• Other interested candidates

• Well-researched

• Knowledge of mathematics

• Analytical skills

• Detail-orientation

1) Basics of derivative markets 

2) Discounting and the time value of money 

3) Understanding the Forward and Futures Markets 

4) Plain Vanilla Options and Fundamental Strategies 

5) Understanding Black-Scholes valuation 

6) Interest rate swaps and the related topics 

7) Knowing Credit derivatives 

8) Trading Volatility 

9) Understanding Exotic derivatives 

10) Financial Engineering

11) Knowing the Uses and Abuses of Derivatives

Derivatives are the financial securities whose price is derived from an underlying group of assets, like stocks, bonds, and currencies etc. These are complex in nature and are somewhat considered riskier for retail investors because of the fact that trading here is done by anticipating the price of the security. 

50 questions are asked in this exam.