Introduction to Commodity Derivatives

ICE Education

Course summary

1 day

750 GBP excl. VAT

English

Online courses

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Course description

Introduction to Commodity Derivatives

This virtual course is aimed at participants with little or no existing knowledge of commodity derivatives. The live sessions are led by experienced traders and trainers who engage to bring theory to life through real-world insight to the derivatives markets.The aim of this program is to provide you with the basic concepts and tools of the Commodity Derivative markets. We draw on markets representative for all participants to ensure relevance to every situation.

We also provide online courses that accommodate our North American delegates. Contact us for more information.

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Suitability - Who should attend?

New traders and brokers
New entrants to the futures and options markets
Support and operations people involved in the commodity markets
Sales and marketing personnel
Individuals working in organisations such as: trading companies, banks, brokers, commodity producers, consumers, refiners, distribution companies, government and associated organisations.

Training Course Content

Technology check-in and welcome
Session 1
- Introductions
- Course structure & agenda
- Derivatives
  - Definitions
  - Key types
  - Comparisons with trading physical
  - Underlying asset classes
  - Derivatives exchanges
- Q&A session
- Exercises
Session 2
- Futures
  - Definition
  - Standardised features
  - Examples
  - Settlement & marking-to-market
  - Clearing & margin
- Q&A session
- Exercises
Session 3
- Futures continued
  - Futures v forwards
  - The order-trade-clearing process
  - Trading physical v trading futures
- Key language
- Understanding a trading screen
- Q&A session
- Exercises
Session 4
- Evolution of derivatives
- Using derivatives:
  - Hedging
  - Speculation
  - Arbitrage
- Futures pricing & Fair value
- Cost of carry
  - Contango
  - Backwardation
- Q&A session
- Exercises
Session 5
- Futures spreads
  - Calendar spreads
  - Rolling
  - Spreads and speculation
  - Spread liquidity
- Q&A session
- Exercises
Session 6
- Analysing futures markets
  - Fundamental analysis
  - Technical analysis
- Introducing options
  - Definitions
  - Key features
  - Comparison with futures
- Course summary
- Explanation of post-course resources
- Q&A session

About provider

Intercontinental Exchange - Open Courses in Commodities and Financial Markets

Intercontinental Exchange's diverse markets span futures and options on interest rates, commodities, indexes and FX, as well as equities and equity options. These markets are relied upon by international market participants, along with our post-trade infrastructure. ICE is uniquely positioned...