Foundations of Derivatives

ACF Academy
Training overview
Professional Course
Classroom, Virtual Classroom
1 day
From 800 USD
725 GBP

Start dates
800 USD

New York City
995 USD

725 GBP

Course description

Foundations of Derivatives

The Foundations of Derivatives course de-mystifies the world of derivatives, explaining what derivatives are, and how they can be used by a wide range of users to solve real-world financial problems.

Who should attend?

Who Should Attend

Anyone working in the financial markets.



Training content

Introduction to Derivatives

  • What are derivatives?
  • Derivative building blocks: forwards and futures, swaps, and options
  • Derivatives as a hedging tool
  • Derivatives as a speculative tool
  • Derivatives as a structuring tool
  • Derivatives across markets – FX, equities, rates, commodities, and credit

Forward Markets

  • Why is there a need for forward contracts?
  • Principles of forward pricing
  • The FX forward market
  • Using FX forwards to avoid currency risk

Financial Futures

  • Definitions and terminology
  • How futures differ from OTC products
  • Standardisation of contracts
  • Overview of interest-rate, bond, stock-index, and currency contracts
  • Physical delivery vs. cash settlement
  • How margining systems work
  • A brief insight into cash and carry pricing
  • Using bond and stock index futures for tactical asset allocation

Interest Rate, Currency, and Equity Swaps

  • The concept of a swap
  • Definitions and terminology
  • Interest rate swaps
  • Currency swaps
  • Equity swaps
  • Central counterparties
  • Swap execution facilities (SEFs)
  • Swap applications
  • Fixing investment returns


  • Why options are different
  • Options concepts and terminology
  • The importance of time value
  • Value and profit profiles
  • An intuitive insight into option pricing
  • What volatility means

Using Stock Options

  • Bull and bear strategies
  • Price enhancement
  • Price protection
  • Using options to enhance value

Credit Derivatives

  • Principles and functions of credit derivatives
  • The credit derivatives market
  • Credit default swaps
  • Market conventions
  • CDS applications
  • CDS application ideas


  • New York: $995
  • London: £800 (plus VAT)
  • Virtual: £725 (plus VAT)

Certification / Credits

CPD: 7 hours

Learning Outcomes

By attending this course, you will:

  • Review the range of derivative products, and the uses to which they can be put
  • Explore how clients use derivatives to mitigate equity, interest rate, FX, and credit risks
  • Examine how derivatives can also be used to enhance value and increment yield
  • Gain first-hand experience of each topic through workshops and case studies

Why choose ACF Academy?

Over 100,000 professionals trained globally

Award-winning practical financial simulations

Consistently high ratings

About ACF Academy

ACF Academy

ACF Consultants are a global leader in providing practical and effective training for financial professionals. Leading banks, companies and financial institutions from all over the world partner with us to develop their people to achieve their goals. They trust our...

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Contact info

ACF Academy

28 King Street
EC2V 8EH London

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