Trading, Hedging and Investment Strategies

Financial Regulation Courses (FRC)

Overview

The Trading, Hedging and Investment Strategies course, offered by Financial Regulation Courses (FRC), covers key derivative strategies used in financial markets for speculation, risk management, and investment enhancement.
This course explores futures spreads, options strategies, and the use of structured products in both exchange-traded and over-the-counter (OTC) markets.
Learners will gain practical skills in managing risks through hedging, as well as profiting from price movements in underlying assets.
Additionally, the course delves into indirect investments and the application of derivative strategies in professional and retail portfolios.

Learning Objectives

By the end of this course, learners will:

• Understand various futures and options trading strategies, including vertical, horizontal, and diagonal spreads.


• Learn how to apply hedging strategies using futures and options to mitigate price risks in underlying assets.


• Gain insights into synthetic positions and their use in managing risks or enhancing returns in portfolios.


• Explore the differences between exchange-traded and OTC derivatives in terms of liquidity, transparency, and counterparty risk.


• Understand the use of structured products and how they meet specific investment needs that traditional instruments cannot.


• Learn about indirect investment methods, such as derivatives-based funds and retail schemes.


• Apply risk management techniques using combinations of options, futures, and other derivative contracts.

Learning Outcomes

Upon successful completion of the course, learners will:

• Be able to construct and implement trading strategies using futures and options across different market conditions.


• Apply hedging techniques to reduce the risk of adverse price movements in financial portfolios.


• Confidently assess the risks and rewards of synthetic positions and structured products.


• Differentiate between the uses and benefits of exchange-traded and OTC derivatives in managing investment risks.


• Manage portfolios by utilising indirect investments, such as derivatives-enhanced funds and pooled schemes.


• Apply futures and options strategies to enhance portfolio performance or protect against market downturns.