Certified Futures Trader

TABLE OF CONTENT

 Introduction

•  Forward Contracts versus Futures Contracts
•  Type of Assets Underlying Futures Contracts
•  Futures Exchanges
•  Types of Assets Underlying Options Contracts
•  Options Exchanges
•  Hedgers, Speculators, and Arbitrageurs
•  The Role of Futures and Options Markets
•  Reasons for the Rapid Growth of Derivative Markets
•  The Recent Indian Story in Derivatives
•  Electronic Exchanges: The State-of-the-Art

 Fundamentals of Futures Markets

•  Standardization of Futures Contracts
•  Margins and Marking to Market: General Principles
•  Spot-Futures Convergence at Expiration
•  Trading: General Principles
•  Value at Risk (VaR)
•  VaR in the Context of Futures Trading in India
•  Types of Members and the Margining System in India
•  Types of Orders
•  Liquidating a Futures Position
•  Trading Volume versus Open Interest
•  Conversion Factors When There are Multiple Deliverable Grades
•  Single Stock Futures

 Pricing of Futures Contracts

•  Notation
•  Assumptions
•  Forward Contract on a Security That Provides No Income
•  Forward Contracts on Assets That Provide a Known Dividend Yield
•  Forward Contracts on Commodities
•  Investment Assets
•  Consumption Assets
•  Calendar Spreads and Arbitrage
•  Net Carry
•  'Backwardation' and 'Contango'
•  Delivery Options
•  Imperfect Markets
•  Synthetic Securities
•  Forward Price versus Futures Prices
•  Stochastic Interest Rates
•  Quasi- Arbitrage
•  Risk and Futures Prices

 Hedging

•  A Selling Hedge
•  A Buying Hedge
•  Lifting a Hedge Prior to the Expiration of the Futures Contract
•  Basis Risk
•  Selecting a Futures Contract
•  A Rolling Hedge
•  The Hedge Ratio
•  Estimating the Hedge Ratio
•  Tailing a Hedge
•  Quantity Uncertainty
•  Rationale for Hedging
•  Hedging Processing Margins
•  Developing Derivative Exchanges Key Issues

 Short -Term Interest Rate Futures

•  Eurodollars
•  T-bills
•  Yields
•  T-bill Futures
•  The No-Arbitrage Pricing Condition
•  Risk Management Using T-bill Futures
•  Shortening T-bill Maturities
•  Lengthening T-bill Maturities
•  Risk Management Using Chained Hedge Ratios
•  Introduction to Eurodollar Futures
•  Calculating Profits and Losses on ED Futures
•  Bundles and Packs
•  Locking in a Borrowing Rate
•  Cash and Carry Arbitrage
•  Reverse Cash and Carry Arbitrage
•  The No-Arbitrage Pricing Equation
•  Hedging Rates for Periods Not Equal to  Days
•  Creating a Fixed Rate Loan
•  Strip versus Stack Hedges
•  The TED Spread

 Long-Term Interest Rate Futures

•  Fundamentals of Bond Valuation
•  Duration
•  The Cash Market
•  The Futures Market
•  Conversion Factors
•  Calculating the Invoice Price for a T-bond
•  The Cheapest to Deliver Bond
•  Arbitrage or Risk Arbitrage?
•  Seller's Options
•  Hedging

 Foreign Exchange Futures

•  Purchase and Sale
•  The Spot Market
•  Arbitrage
•  The Forward Market
•  Merchant Rates and Exchange Margins
•  The No-Arbitrage Forward Price
•  One Way Arbitrage
•  The Relationship Between Interest Rate Parity and One-Way Arbitrage
•  Options Forwards
•  Modification of Forward Contracts
•  Futures Markets
•  Hedging an Export Transaction
•  Hedging an Import Transaction
•  Creating Synthetic Investments
•  Borrowing Funds Abroad
•  Creating Synthetic Futures Contracts
•  Creating Synthetic Futures Contracts
•  Creating Synthetic Short-Term Interest Rate Contracts
•  Forward Covered Interest Arbitrage

 Stock Index Futures

•  Price Weighted Indices
•  Value Weighted Indices
•  Equally Weighted Indices
•  Forming Portfolios to Mimic an Index
•  Portfolio Re-Balancing
•  Re-balancing an Equally Weighted Portfolio
•  Changing the Base Period Capitulation
•  Pricing of Index Futures
•  Cash and Carry Arbitrage
•  Reverse Cash and Carry Arbitrage
•  The No-Arbitrage Equation
•  Index Arbitrage and Programme Trading
•  Hedging with Index Futures
•  Market Timing with Index Futures
•  Using Index Futures to Change the Beta of a Portfolio
•  Stock Picking
•  Portfolio Insurance
•  Index Futures and Stock Market Volatility
•  Index Futures in India

Apply for Certification

http://www.vskills.in/certification/Futures-Trader-Certification