Understanding Futures and FX Markets
Futures Contracts, Hedging Strategies, and Foreign Exchange Mechanics
About This Course
Course Information
Futures for any type of assets are bought and sold by contract. Traders can open a currency trading account through a forex brokerage or full-service financial brokerage. For the retail trader, it’s become popular and more common to utilise the services of licensed and regulated forex brokers.
Certificate on Completion
This course is made up of videos, questions and additional reading materials, and accounts for 6 units of CPD . One unit is the equivalent of one hour of learning.
Course Sections
This CPD course is made up of the following sections:
- Futures terminology (video)
- Futures terminology (quiz)
- Settlement and accounting (video)
- Settlement and accounting (quiz)
- Benefits of hedging (video)
- Benefits of hedging (quiz)
- Optimal hedging (video)
- Optimal hedging (quiz)
- FX contracts (video)
- FX contracts (quiz)
- FX risk (video)
- FX risk (quiz)
- FX rate drivers (video)
- FX rate drivers (quiz)
What You Will Learn
- Define the terminology of futures markets, including open interest, margin requirements, and position limits
- Explain the convergence of futures and spot prices as a contract approaches maturity
- Distinguish between long hedges and short hedges with worked numerical examples
- Calculate the optimal hedge ratio using correlation and standard deviation of price changes
- Apply basis risk concepts to evaluate the effectiveness of a futures hedge
- Describe how foreign exchange spot quotes, forward quotes, and bid-ask spreads are structured
- Identify the differences between transaction risk, translation risk, and economic risk in currency exposure
Who This Course Is For
- Finance professionals who need to understand how futures and FX derivatives are used for hedging
- Risk analysts working with commodity, equity, or currency exposures
- Accountants preparing for roles that involve foreign exchange reporting or treasury functions
Prerequisites
- Basic understanding of financial markets and how assets are priced
- Familiarity with arithmetic involving percentages, ratios, and present value calculations
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Course Details
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