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Description

Derivative Instruments: Identifying Products, Understanding Uses and Risks

Build the vocabulary and mechanics of derivatives to engage confidently with trading desks

  • 2 days — 14 h
  • In-person or virtual
  • Foundation
  • Up to 6 participants

Derivatives come up in day-to-day discussions without everyone sharing the same vocabulary. A forward contract and an option do not answer the same need. Support teams process transactions whose economic logic they do not fully grasp, and discrepancies are picked up late.

These two days provide the core reference points on each instrument taken in isolation. You distinguish the families of derivatives and the markets on which they trade. You follow a contract from inception through to unwinding. You link each instrument to a hedging or positioning need. Finally, you identify the main risks carried by these transactions.

Learning objectives

  • Distinguish the families of derivative instruments and their trading venues
  • Describe the mechanics of a forward contract from inception to unwinding
  • Explain how an option works and the role of the premium
  • Link a derivative instrument to the economic need it serves
  • Identify the main risks attached to a derivatives position

What makes this programme different

Full walk-through of the life cycle of a transaction from processing to unwinding
Guided reading of contract terms genuinely used on trading desks
Exercises on recognising the payoff profile of each instrument

Programme

1The Derivatives Landscape

Instruments, markets and participants

  • Underlyings and families of instruments
  • Exchange-traded and over-the-counter markets
  • Participants and their hedging or positioning motivations
  • Reference vocabulary and the notion of notional amount

2Forwards, Futures and Swaps

Firm commitments

  • Mechanics of a forward and futures contract
  • Margin calls and the role of the clearing house
  • Principle of a swap and the exchange of cash flows
  • The most common hedging applications

3Options

A right rather than an obligation

  • Buying and selling calls and puts
  • Components of the premium
  • Payoff profiles at maturity
  • Simple hedging strategies

4Life Cycle and Risks

What happens after the trade

  • Confirmation and processing of the transaction
  • Valuation and collateral calls
  • Market, counterparty and liquidity risks
  • Control points for support functions

Who is it for

Staff in support functions including middle office, back office, control and audit, as well as anyone approaching derivatives markets.

Prerequisites

No prerequisites

Dates & locations

36 scheduled dates between November 2026 and December 2027. Seats are confirmed in the order enquiries are received.

November 2026

December 2026

January 2027

February 2027

March 2027

April 2027

May 2027

June 2027

September 2027

October 2027

November 2027

December 2027

None of these dates suit you? We open additional sessions on request, and any programme can be run privately for your team.

Practical details

Before the programme
Online positioning questionnaire. Your development objectives are shared with the trainer, who tailors the practical case studies to your context.
Teaching methods
Theoretical input, workshops and practical case studies. Digital course materials and method sheets provided.
Assessment
Multiple-choice tests and role-play exercises. Assessment of learning at the start and end of the programme, with immediate and 60-day follow-up evaluations.
After the programme
One year of access to the e-learning platform. Self-assessment of the skills acquired and a 30-day follow-up session with your trainer.
How to register
Registration online or on the basis of a quotation.
Lead time
11 working days after confirmation of registration.
Accessibility
Accessible to people of determination. Contact our accessibility coordinator to design a suitable solution: contact@mpf-academy.ae
Start dates
Rolling intake: in addition to the scheduled sessions, this programme can start on request.