As a nonprofit foundation, IFM has consistently educated financial professionals, market participants, producers and manufacturers, regulators, and policymakers on derivatives markets for more than 30 years. Our course has provided attendees with a solid understanding of futures, options and swaps markets on trading and mechanics including terminology, risk management, pricing, and basic trade strategies and regulation.

This virtual live course is delivered in 2-hour sessions over 5 days. Program is delivered by an engaging instructor with extensive real-world expertise and the class discussion is supported by case studies, practice exercises and print materials. The course fee includes two must-read industry books - Futures and Options and the Guide to U.S. Futures Regulation.

Learning Outcome

After the course you will be able to:

• Describe trading and uses of futures and be able compare and contrast futures to securities and cash market products.
• Understand futures trading theory, basic functions, characteristics, pricing and terminology.
• Interpret problems faced by those who are either long or short the market and understand how using listed contracts alleviates those problems by calculation of profit or loss with/without futures implementation.
• Explain the principles of margins, offset, settlement.
• Understand the strategy used in different order types.
• Describe the nature of “basis risk” and how it may impact normally robust hedging results.
• Describe the nature of future spreads as “relative positions”.
• Identify the principles of hedging and cash-futures price relationships as well as the importance of the basis.
• Understand the use of futures to hedge exposure to an underlying commodity or to speculate on a future price.
• Enumerate the uses of stock-indexes, foreign exchange, energy, metals and other futures-based commodities.
• Understand options nomenclature including premiums, exercise, assignment and settlement.
• Describe option price determinants of option price and how they affect the option premium.
• Understand use of option spreads to focus on a given market forecast; implementing vertical spread, horizontal spread,straddle, strangles, butterfly and condor strategies.
• Compare futures and options on futures as risk management tools.
• Understand portfolio management strategies and tactics using various futures and options products to modify the risk characteristics of a given portfolio.

Who Should Attend?

Anyone requiring an in-depth understanding of futures, options and swaps markets.

• Prospective and new markets users
• Commercial commodity producers and suppliers
• Companies that provide financial, energy, industrial and food products
• Asset managers
• Pension fund managers
• Corporates
• Legal and compliance staff
• Support staff: IT, risk management, operations, marketing, sales, supply and distribution, treasury, and accounting
• New hires and interns
• Industry vendors
• Exchange personnel
• Regulators and public policymakers

Series 3 Exam Candidates

This course is well-suited for those preparing for the Series 3 Exam — the National Commodities Futures Examination —  which is basic proficiency standards established for industry professionals. The course covers all the market knowledge section (85 questions) of the Series 3 Exam and major aspects of the regulation section (35 questions). Additional test taking tips are covered at the end of the class. 

The course fee also includes  a 6-month Web subscription to IFM's PassMaster — a comprehensive, tutorial with Q&A that helps exam candidates focus and streamline study time. Also included is a Series 3 Exam Simulator with unlimited timed test that mimics the test-taking experience.

Level: Fundamental to Intermediate

Duration and Format: Virtual, live for a total of 10 hours - 2 hours per day on five (5) consecutive days. Sessions hours are convenient for U.S. participants and many global attendees too.