Certification Program in Derivatives
Learn Derivative Concepts, Futures & Options, Forwards, Swaps, Strategies, Applications, Accounting
Derivatives are one of the three main categories of financial instruments, the other two being equities (i.e. stocks) and debt (i.e. bonds and mortgages). Knowledge of these instruments is must for building a career in the Investments Industry.
A derivative is a financial contract which derives its value from the performance of another entity such as an asset, index, or interest rate, called the ‘underlying asset’. The most common underlying assets include commodities, stocks, bonds, interest rates and currencies, but they can also be other derivatives, which add another layer of complexity to proper valuation. The components of a firm's capital structure, e.g. bonds and stock, can also be considered derivatives, more precisely options, with the underlying being the firm's assets, but this is unusual outside of technical contexts.
Derivatives are a contract between two parties that specify conditions (especially the dates, resulting values and definitions of the underlying variables, the parties' contractual obligations, and the notional amount) under which payments are to be made between the parties.
Derivatives include a variety of financial contracts, including futures, forwards, swaps, options, and variations of these such as caps, floors, collars, and credit default swaps.
Derivatives are broadly categorized by the relationship between the underlying asset and the derivative (such as forward, option, swap); the type of underlying asset (such as equity derivatives, foreign exchange derivatives, interest rate derivatives, commodity derivatives, or credit derivatives); the market in which they trade (such as exchange-traded or over-the-counter); and their pay-off profile.
Derivatives can be used either for risk management (i.e. to ‘hedge’ by providing offsetting compensation in case of an undesired event, a kind of ‘insurance’) or for speculation. This distinction is important because the former is a prudent aspect of operations and financial management for many firms across many industries; the latter offers managers and investors a risky opportunity to increase profit, which may not be properly disclosed to stakeholders.
- 11 High-Quality Videos
- 10 Documents
- Online Test
Who should take this course?
Any Finance Professional, CA, MBA, Freshers with Derivatives Knowledge and Certification can build career in:
- Derivative Analysis & Research
- Money Management
- Treasury and Proprietary trading
- Back Office & Risk
- Relationship Management & Sales
Derivatives are very important financial Instruments in present day Money Management. Certified Derivatives Analyst are very important resource for Financial Institutions and Corporate. They have options to work in Banks, Investment Banks, Wholesale Banks, Hedge Funds, Broking companies, Mutual Funds, Insurance, Wealth Management, KPO and BPO of International Financial Institutions, Finance or Treasury of leading Corporate across sectors.
Language of instruction: English