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 and a subscription to PassMaster.

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
• New hires and interns
• Industry vendors
• Exchange personnel
• Regulators and public policymakers
• Support staff: IT, risk management, operations, marketing, sales, supply and distribution, treasury, and accounting

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 subscription to IFM's PassMaster — our exclusive and highly effective learning software that stimulates revision and studying and will help you to identifying your own knowledge gaps. PassMaster provides a learning module of where you apply your knowledge and test your competency through questions and receive immediate feedback through explanatory answers. It also includes an exam simulator (with unlimited timed test) for NFA exam candidates.  The timed tests mimic the exam and allows you to practice managing your time and reduce text anxiety.

Level: Fundamental to Intermediate

Duration and Format: Virtual, live for a total of 10 hours - 2 hours per day on five (5) consecutive days. Session hours are convenient for U.S. participants and many global attendees.  Note: This course includes an advance reading assignment.