Whoever has watched "The Wolf of Wall Street" has likely struggled to understand the jobs, products, jargon that surround financial markets. Some of us are still trying to get our way out of this financial jungle and clarify the associated strategies. Let's demystify these!
In close collaboration with PwC's subject matter experts, PwC's Academy has developed a comprehensive, multi-layered training curriculum for junior and more experienced financial industries’ employees and managers alike, who seek to gain a solid knowledge of derivative instruments.
With the 'Futures and forwards - Foundation' module, participants will dive into the characteristics and associated risks, market use, and valuation of forwards and futures.
To complement your learning journey, please check our Derivative instruments curriculum.
Duration: 2h30
Language: Available in English and French. The supporting material is only available in English.
Number of participants: up to 15
Available as intra-company course (i.e. dedicated session on demand)
Objectives
By the end of this training, participants will be able to:
- define the general characteristics of futures and forwards;
- gain in-depth understanding of how the instrument operates;
- list how it can best be used on the market, be it in isolation or in combination with other instruments;
- understand the valuation method and what can impact futures' and forwards' value;
- identify major risks associated and determine controls that may mitigate them.
Content
- Principle of a future or forward contract, based on the yield curve
- Use of future or forward contract: hedging or speculative trading purposes
- Futures contracts:
- the exchange clearing room and margining system
- theoretical vs market price of a future
- invoiced amount at delivery
- analysis of futures contracts
- Forwards contracts: the main types of forwards are presented, namely
- on money market rates: FRAs
- on currencies (forex forward), including NDFs contracts
- on equities and on bonds
This course content is presented in an attractive and understandable manner: it is illustrated with numerous real market examples. The course aims to provide a clear and thorough understanding of the considered instrument, with core mathematical concepts introduced when addressing pricing.
Target audience
Anyone who wants to reach a sound understanding of futures and forwards used by investment managers.
Our lead experts
This training is coordinated by Samir Moussaoui, Director at PwC Luxembourg.
The different modules will be animated by experts in derivatives.
Samir helps lead our AVS practice in managing and delivering a diverse range of alternative investments and assets valuation engagements, in the context of assurance and non-assurance services, to local and international clients and PwC offices. He has exposure to a wide range of valuation methodologies such as discounted cash flow models, trading and transaction multiple valuations, net asset value approach as well as milestone analyses, primarily in the context of financial reporting.
Samir is Chartered Financial Analyst (CFA) and Chartered Valuation Surveyor (MRICS).
