Introduction to Hedging with Futures And Options

This course aims to provide a thorough understanding of the basics of hedging with futures and options, covering the market terminology, pricing, trading strategies and margining of LME contracts. Topics include how to lock-in future selling and purchasing prices, causes and management of price volatility as well as different hedging strategies.

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What will you learn

  • Learn how effective price risk management can be achieved with LME contracts
  • Understand the benefits of hedging with futures
  • Develop a knowledge of option hedging strategies and their outcomes
  • Work through interactive workshops on hedging futures & options

Benefits for you

This course aims to provide you with a fundamental knowledge of price risk management in the metal industry. You will develop a comprehensive and practical understanding of the benefits of hedging with futures and options through highly interactive workshops which are based on typical examples of the types of risk scenarios prevailing in the metal industry.

Our courses in Singapore are FTS Eligibile - Financial Training Scheme for Singaporean citizens and PRs only.

Benefits for your organisation

Organisations can benefit from having employees who fully understand how to use futures and traded options as part of a price risk management programme.

Programme

  • Review of LME contracts and prompt date structure
  • Price risk management – what is it?
  • What is hedging?
  • Hedging examples with futures
  • Hedging examples with Monthly Average Futures
  • Workshops
  • LME Traded Options
  • Hedging examples with options
  • Traded Average Price Options (TAPOs)
  • Workshops
  • Questions and answers 

Pre-requisites

Previous knowledge of the LME.

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Contact us

For further information please email our Education team.