Derivatives & Futures

Derivatives & Futures is an advanced micro-course designed for experienced investors, active traders and finance professionals who want to understand how derivatives can be used for trading, hedging and risk management. The course takes learners from the core structure of forwards, futures, options and swaps through futures pricing, margin accounts and marking to market. It then introduces options pricing, moneyness, Black-Scholes, the key Greeks and practical strategies including covered calls, protective puts and option spreads. The course also applies these concepts to Pakistan's market environment, covering PSX futures, PMEX commodity futures and commodity hedging, followed by an introduction to Value at Risk (VaR) and relevant regulatory considerations. The course concludes with a written capstone in which learners design a complete, risk-managed derivatives trading strategy, including entry and exit conditions, maximum-loss calculations and appropriate risk-monitoring measures.