Derivatives Primer

Trusted by

Explore in this Derivatives Primer course the essentials of derivatives without the mathematics usually associated with this subject; using a descriptive approach, discover what forwards, futures, swaps and options are and how they are used in the financial market.

  • Derivatives
  • Futures
  • Margin account
  • Cash settlement
  • Interest rate swaps
  • FX swaps
  • Call Options
  • Volatility
  • Forwards
  • Mark to market
  • Physical settlement
  • Equity swaps
  • Credit default swaps
  • Cross currency swaps
  • Put options
  • Option greeks

Delivery options

  • Classroom session (half day)
  • Virtual classroom (series of 1 to 1.5-hour webinars)
  • In-house

Option 1: classroom

You attend alongside other market participants: £495

Option 2: virtual classroom

You attend alongside other market participants via an interactive online classroom: £395

Option 3: In-house

This course can be tailored specifically for your organisation and delivered at your offices, offering a cost effective solution for more than 5 employees.

  • Have you ever heard about forwards, futures, swaps and options and wondered what they are, why they exist and how they are used? Then this class is for you
  • Learn in this Derivatives Primer course the mechanics of forwards and futures, the mark to market and the final settlement processes and how market participants use these products in the equity, fixed income, FX and commodity markets
  • Learn in this Derivatives Primer course the cash flow, risk and reward, and uses of swaps in the equity, interest rate, credit and FX markets
  • Learn in this class the essential terminologies associated with options such as strike price, expiration and volatility, the key value drivers of options and the corresponding risk measures (option greeks) and the value propositions of option trades
  • People who are looking for a first level introduction to futures, swaps and options, to get to know the terms and numbers associated with these instruments
  • People who have come across derivatives but like to see a refresher or relearn the subject systematically
  • Portfolio managers, corporate treasurers, salespeople and traders for financial firms who have been operating in the cash markets and wish to get involved with derivatives
  • New joiners to the financial industry
  • Professionals in support functions such as operations, technology, risk and financial controls of financial institutions
  • *Pre-requisite: Participants do not need to have any pre-knowledge in the subject; though having prior exposure to news and conversations about derivatives may be helpful
  • What are derivatives?
    • The grand design: the risk reward without the physical underlying
  • Forwards and futures
    • Physical vs. cash settlement
    • The mechanics of daily mark to market
    • Example contracts: crude oil futures, currency futures, index futures, interest rate futures
    • Class quiz: why are they traded? how are they used?
  • Swaps
    • How does a swap compare to a forward?
    • Example contracts: equity swaps, interest rate swaps, credit default swaps, FX swaps
    • Class quiz: why are they traded? how are they used?
  • Options
    • Essential terminologies: calls and puts, strike price, option premium, “moneyness”, breakeven
    • Understanding volatility: actual and implied volatility, VIX index
    • Option greeks as P/L drivers
    • Class quiz: value drivers; what make options cheap and expensive?
  • This Derivatives Primer course explains the reason for derivatives based on the natural needs in the practical world
  • This class presents multiple types of derivatives to demonstrate their commonalities and differences
  • This Derivatives Primer course enables the participants to know what they are hearing or talking about when they encounter derivative products even though it is not designed to be a technical exposition into derivatives and does not cover pricing, valuations models and risk calculations
  • This Derivatives Primer course is presented by a former market practitioner who is also an experienced teacher; it includes real life examples and interactive class exercises

Kai Hing Lum

Financial Markets

Kai Hing is an expert financial markets educator.

Kai Hing held several roles during his 21-year tenure at UBS across audit, in which he focused on trading and derivative businesses; and a specialized team responsible for the structuring and risk assessment of complex trades and new businesses.

Equipped with both broad and detailed understanding of finance, Kai Hing then joined the renowned UBS Financial Markets Education team and took on global responsibility to manage programs, create content and teach courses to colleagues and clients on a wide range of topics on equities, fixed income, FX, derivatives, equity valuation, portfolio analysis, risk control frameworks and methodologies.

As an experienced presenter with energetic and enthusiastic presentation style, coupled with a deep understanding of the subjects from his practical experiences, Kai Hing constantly receives high praise from his audience.

Before his career in the financial industry, Kai Hing taught and did research in mathematics after obtaining his Ph.D. in mathematics from the University of Chicago.

Kai Hing leads on our Financial Markets offerings.

Interested in a course?

Detailed information on the processing of personal data can be found in our Privacy Policy.