The objective of this warm-up seminar is to give you a general introduction to futures and options and a general understanding of the uses of these instruments for trading and risk management purposes.
The seminar is targeted towards those who wish to extract maximum value from subsequent participation in the "Futures and Options – Analysis and Strategies" seminar.
We start with a brief introduction to futures and options, explaining the advantages and disadvantages of these instruments. We describe the basic "mechanics" of the instruments, illustrated by pay-off, P&L and time profile diagrams, and explain some of the most important terms in the futures and options "glossary".
We then give an overview of the futures and options markets, and we present selected examples of futures and options on bonds, Eurodollars, equity indices and other types of financial assets. We also look at non-financial contracts such as weather, energy, commodity and macro futures. We explain how the instruments are traded, cleared and settled on important international exchanges such as Eurex, and the newly merged CME/CBOT.
Next, we give an overview and examples of the basic uses of futures and options for trading and hedging purposes.
Finally, we briefly discuss the inherent risks associated with the use of futures and options.
