Course description
Introduction to the London Metal Exchange and Hedging: Two Days
The Introduction to the London Metal Exchange and Hedging: Two Days (Singapore only) will provide you with an understanding of the key services provided by the LME and demonstrate how these services can improve your organisation’s approach to price risk management. Both theoretical and practical skills developed at this course can be applied easily in the workplace.It provides an overview of operations, structure, products, trading terminology and procedures. The course will also enhance your knowledge of the basics of hedging with futures and options, covering the market terminology, pricing, trading strategies and margining of LME contracts. Topics include how to lock-in future selling and purchasing prices, causes and management of price volatility as well as different hedging strategies.
Who should attend?
This course is suitable for you if you have little or no knowledge of the London Metal Exchange’s operations and want to learn how these services can add value to your business.
A good level of spoken and written English is required to attend this course. participants should be of an intermediate standard in English at a minimum. Please refer to the Common European Framework of Reference for Languages - as a guide the level required is B2.
Training content
Day 1
Introduction to the LME
- History, organisation and primary services of the LME
- Pricing methodology
- Introduction to hedging
- Prompt date structure and other LME terminology
- LME contracts
- Warehousing and fundamentals of delivery
- Trading at the LME
- Understanding the role of an LME broker/dealer
- Clearing and LME Clear
- Regulation of the LME
Day 2
Hedging with Futures and Options
- Basic concepts, uses and benefits of hedging with futures
- Basic hedging examples
- Contango and backwardation
- Setting up a hedging team
- Hedging with Monthly Average Futures
- Basic concepts, uses and benefits of hedging with options
- Options terminology
- Risk implications and motives
- Options pricing models
- TAPOs
- Selling an option
Costs
Course fee: £2155 + VAT
Certification / Credits
The Institute of Banking & Finance Singapore (IBF)
LME Education courses are now accredited by The Institute of Banking & Finance Singapore (IBF). As a part of the Financial Training Scheme (FTS), our courses are recognised by IBF and as a result, Participants can now apply for funding when attending an LME Education training programme.
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Euromoney Learning
At Euromoney Learning, we understand that learning doesn’t start and end when you leave the classroom. We know that the financial markets never stand still, and that technology has both simplified and added complexity at a break-neck pace. That’s why...