| COURSE : CERTIFIED HEDGING ON FOREX, FUTURES & OPTIONS PROFESSIONAL | |
|---|---|
| Course Overview | Commodity hedging involves taking positions in complex derivatives, which carry high risk. Positions in futures and options may provide hedging benefits but also involve payoffs that may be disproportionate to costs or premiums paid. It is important for managers in risk management, audit, accounting, MIS roles and for bankers and analysts to understand implications of each commodity hedging strategy in terms of payoffs, risks and rewards. Further, it is important to understand the legal and regulatory framework around this area to ensure that compliances are effective. |
| Training Duration | Total Training Hours : 30 Hours Training Duration : 1 Week Total Training Days : 5 Working Days |
| Training Schedules | Weekdays (Sunday to Thursday) Regular Sessions : 6 Hrs Per day (9am to 2pm or 3.00pm to 9.00 pm) Food & refreshments Included WeekEnds (Friday & Saturday) Fast Track Sessions: 8 Hours per day (9am to 5pm) Food & refreshments Included |
| Certifications: | 1) Certificate from Laurels Training Institute, Attested by Knowledge & Human Development Authority (KHDA) government of Dubai, UAE OPTIONAL 2) Certificate from American Institute of Professional Studies (AIPS) from USA (After 15 Days of course Completion which will couriered to the attendees office address) |
| Tests | Yes |
| Learning Aids | Yes |
| Course Material | Hard & Soft Copies of Study Material |
| Language of Instruction | English |
| Instructor Helpline | Yes 1. Email 2. Social Media (For Emergency requirements) |
| Registration Requirements | 1. Passport Copy 2. Curriculum Vitae 3. Passport size photographs 4. Course Fee |
| Mode of Payment: | Cash / Cheque / Credit Card / Bank Transfer. |
| Eligibility Criteria (Who should attend this training) | Professionals from Risk, Audit, Accounting, MIS Senior management - both finance and operations Banking and other lending institutions Compliance |
| Course Benefits | This program seeks to provide the market view to such managers and will cover derivative product topics, regulatory framework, accounting and risk management areas. The program does not seek to provide advice or tips on what to buy and when to buy and is not intended to get a trader to trade better. There is no prior knowledge of commodities or hedging required |
| Course Contents / Outline | "Spot, basis, and forward prices in commodity markets Overview of derivatives contracts in commodity markets Spot and basis price models: GBM, mean reversion, jumps Simulation of spot price models in Excel and visualization of price paths Mark to market and pricing models Market risk management: VaR, stress tests, backtests Advanced Hedging Using ""proxies"" for hedging analysis; review of regression analysis applied to hedging Using a single vs. multiple proxy hedges Examples of basis hedging in metals and agricultural markets Delta hedging of option portfolios; key considerations. Delta-gamma hedging Delta-gamma-vega hedging Cross-hedging and cross-market Greeks; spark spreads; crack spreads, fx-commodity price risks Commodity Price Behaviour (II): Overview of Forward Curve Models Forward curve behavior Analysis of gold forward curve; explaining Contango and Backwardation changes One factor models of the forward curve: uses and limitations Multi-factor and multi-commodity models Multi-factor models (Cholesky-based) and principal component analysis (PCA); Uses and pitfalls Excel exercises of PCA and structured Monte Carlo simulation; VaR and valuation calculations of energy derivatives Valuation and Hedging of Physical Assets and Long Term Contracts as Real Options Real option in commodity markets Case study: Mining projects and Real Options Commodity transportation capabilities as a locational spread Generation assets and Refineries as real options Understanding and valuing the optionality in storage facilities LNG trading and locational spread and timing options Advanced Market Risk Management for Commodity Trading Introducing volatilities as risk factors Advanced historical simulation: EWMA HS and volatility-updated HS Marginal VaR analysis: applications for hedging and risk management Case study: Identifying natural portfolio hedges in commodity portfolios Backtesting VaR models: frequency and magnitude of losses Tail ""heaviness"" and tail ""asymmetry""; expected tail loss and other risk measures Extreme value theory VaR and ETL Key insights from behavioral finance regarding misperception of extreme risk probabilities Case study: diagnosis and recommendations for model improvements based on backtest results Earnings at Risk and Cash Flow at Risk Earnings at risk and cash flow at risk for multiple maturities Natural risk drivers and macro hedges Margin-at-risk calculation and liquidity risk management Dynamic simulation of portfolios responding to changing market conditions Evolution of prices, volatilities, and correlations in a dynamic simulation framework Integration of commodity, FX, and Interest rate risks Case study: Use of Cash Flow at Risk by BHP Billiton Counterparty Risk Management Potential counterparty exposure for commodity derivatives Counterparty risk trading in commodity trading Expected vs. potential future exposure Case Study: Step by step PFE Excel calculations and interpretation for forwards, swaps and options Counterparty VaR and dynamic potential exposure Potential exposure and the role of margin, collateral, and settlements Adding default probabilities for different time frames Using potential credit exposure to determine limits Advanced Derivatives Valuation and Hedging Pricing and hedging options with volatility surfaces Calculation and use of skew-adjusted delta and gammas Case study: Stress Test Matrices with Price and Volatility Shocks Volatility surfaces and implied price distributions Stochastic volatility models in commodity markets Valuation and hedging of exposures with volumetric risk" |