Futures and Options - Mechanics and Markets

Tuesday, September 22

09.00 - 09.15 Welcome and Introduction

09.15 - 12.00 General Introduction to Futures and Options

• The Difference between Listed and OTC Instruments
• What are Futures and Options?
• Examples of Important Contracts
  • Money market, bond, equity and FX futures and options
  • Commodity, energy, weather and macro futures and options
• The Mechanics of Futures and Options
  • Time profiles and pay-off profiles
  • Value and P&L diagrams
• Futures and Options Glossary
• Exercises: Futures and Options Diagrams

Futures and Options Markets

• Overview of Major Futures and Options Markets
• How Futures and Options are traded
  • Open outcry systems
  • The “language” of traders
  • Electronic trading systems
  • Order types and execution
• Case Studies
  • CME/ CBOT
  • Euronext/Liffe
  • Eurex

12.00 - 13.00 Lunch

13.00 - 16.30 Clearing and Settlement of Futures and Options

• What Happens after the Trade is executed?
• The Role of the Clearing House
• Margin Systems
• Daily Settlement
• Final Settlement and Delivery

Applications of Futures and Options

• Overview
• Trading with Futures and Option
• Risk Management with Futures and Options
• Risks of Futures and Options

Small Quiz

Evaluation and Termination of the Seminar