Introduction Video - Derivatives

What is a Derivative?

Definition of Derivatives

Types of Derivatives

Features of the Derivative Contract

Trading and Settlement of Derivatives

Participants in Derivative Markets

Size of the Derivative Market

Significance of Derivative Market

Criticism of Derivative Market

Quiz - Introduction to Derivatives

Introduction Video - OTC vs Exchange Traded Instruments

What is a Security Exchange?

Over-the-Counter (OTC) Markets

Market Making

OTC Transactions

Regulation

Risks

Quiz - OTC vs Exchange Traded Instruments

Introduction Video - Futures Contract

Introduction and Features of the Futures Contract

Futures Contracts Examples

Other Features of the Futures Contract

Trading and Settlement of Futures Contract

Tick Size and Point Value

Volume and Open Interest

Using Open Interest and Volume help to identify the current market trend

Daily Price Movement and Position Limits

Mark-to-Market

Margin Requirements

Quiz - Futures Contract

Pricing of Futures, Contango and Backwardation

Convergence

Basis

Physical Delivery

Rollover

Basic fundamentals of Options

Introduction Video - Options

Call Option

Introduction Video - Options (Contd..)

Put Option

Default Risk in Options

Summary of Call and Put Options

Rationale behind trading options

Introduction to Pricing of options

Moneyness of the Options

Quiz - Options

Introduction Video - Swaps

Introduction to Swap

History of Swap

Floating Interest Rates

Interest Rate Swap

Example of Interest Rate Swap

Use of Swap to Transform a Liability

Using a Swap to Transform an Asset

Swap Rate

Value of Swap

Confirmation

Risks faced by parties

Commodity Swap

Fixed for Floating Commodity Swaps

Commodity-for-Interest Swaps

Debt-Equity Swap

Equity-Debt Swap

Total Return Swap Contract

Example of Total Return Swap

Terminologies of Total Return Swap

Rationale behind taking positions in the TRS

Uses of a Total Return Swap

Risks and Considerations of TRS

Quiz - Swaps

Introduction to Credit Derivatives

Types of Credit Derivatives

Credit Events

Credit Default Swap

Terminologies of Credit Default Swap

CDS Spreads and Maturities

Risks in CDS

Naked CDS

Who determines whether a credit event has occured?

Settlement of CDS

Rationale behind taking positions in CDS

Similarity of CDS and Put Options

Trends in the CDS Market