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Derivatives

Estimated study time: 8 – 14 hours

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 function 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