Derivatives

The Derivatives module offers the learner some insight into the complex world of futures and options. The seven topic module starts with some background on the development of derivatives. The focus then shifts to specific types of derivative instruments.

Futures, options, warrants and swaps are examined in this material before the local futures exchange, SAFEX, is introduced.

Who owns SAFEX? How is risk managed on the exchange? What is the func- tion of the clearing house? What is a margin payment? How do futures close out? How do options expire? This module answers these questions and introduces the learner to the OTC option trade cycle and the SAFEX-listed trade cycle, from order placement through to final registration.

Topics

  • What are Derivatives? – Futures
  • Options and Warrants – Interest Rate Swaps
  • How & Where Derivatives are Traded
  • The OTC Options Trade Cycle
  • SAFEX-Listed Derivatives Trade Cycle