SC Licensing Examination Revision

shadow
SCLE Revision: Futures and Options  (Module 14)

Module 14: Futures and Options

Duration: 2.5 days
Venue: Securities Commission Malaysia

Programme Objective

This course equips participants with comprehensive understanding and knowledge based on the Module 14 Study Outline. Participants will advance their knowledge and comprehension further via an interactive teaching and learning experience while increasing their confidence in sitting for the examination.  This course will be facilitated by an experienced and qualified trainer. 

Programme Overview

This 2 ½ -day course is designed to match the licensing study outline for Module 14 on futures and options. The topics covered are development of the futures market, types of futures market and its trading, options market and its trading strategies. 

Who Should Attend
  • Candidates preparing for the Module 12 licensing examination
  • New entrants to the capital market industry and staff of investment banks 

 

  • Programme Delivery

    Learning Outcomes

    Candidates are expected to have good knowledge, understanding and ability to apply in the
    following areas:

    • Concepts and structure of the futures and options markets
    • Product knowledge on all contracts that are currently available on Bursa Derivatives
    • Hedging, arbitraging and speculative trading strategies using all futures contracts available on Bursa Derivatives
    • Option trading strategies including pay-off diagrams
    • Options valuation
    • Option pricing models and their uses in options trading
    • Market anlaysis - fundamental and technical analysis of futures market

    Candidates' Prerequisites

    Candidates are expected to have relatively strong capability in the application and analysis of information provided in this outline and its reference.

    Methodology

    This course will be delivered using effective learning methods which include presentations, discussions and review examination questions. 
  • Programme Outline

    DAY ONE

    0830am Registration
    0900am Development of the Futures Market 
    • Dawn of the Forward Market
    • The Forward Contract
    • Types of Forward Contracts
    • Forward Price and the Cost of Carry
    • Disadvantages of Forward Contracts 
    1045am Refreshments
    1115am The Workings of the Futures Market 
    • Futures Contract Specifications
    • Types of Futures Contracts
    • Advantages of Futures Market
    • Disadvantages of Futures Contract
    • Convergence of Futures to Spot Prices
    • Futures Prices and Cost of Carry
    • Market Participants: Hedgers, Speculators and Arbitrageurs
    0100pm Lunch
    0200pm Trading the Futures Contract 
    • Uses of Futures: Hedging, Speculating and Arbitraging
    • Types of Orders
    • Margining and Daily Settlement
    • Open Interest and Volume
    • Closing Out Positions
    • Negotiated Large Trade (NLT)
    • Exchange for Related Positions (EFRP)
    • Technical Analysis
    • Fundamental Analysis
    0340pm Refreshments
    0400pm Trading Futures in Malaysia  
    • Overview of Regulation of Futures Trading 
    Trading Commodity Futures 
    • Crude Palm Oil Futures (FCPO)
    • Crude Palm Kernel Futures (FPKO)
    • USD Crude Palm Oil Futures (FUPO)
    • Gold Futures (FGLD)
    • USD RBD Palm Olein Futures Contract (FPOL)
    Trading Equity Futures 
    • FTSE Bursa Malaysia KLCI Futures (FKLI) 
    • Single Stock Futures (SSF) 
    Trading Financial Futures \
    • Kuala Lumpur Interbank Offered Rate Futures (FKB3)
    • 3-Year Malaysian Government Securities Futures (FMG3)
    • 5-Year Malaysian Government Securities Futures (FMG5)
    0530pm End of Day One

    DAY TWO

    0830am Registration
    0900am The Options Market 
    • Basic Concepts
    • Underlying Instruments
    • Option Contract Specifications
    • Uses of Options
    • Advantages and Disadvantages of Using Options
    • Listed Stock Warrants and Structured Warrants  
    1045am Refreshments
    1100am Options Valuation 
    • Intrinsic and Time Value
    • Factors Affecting Options Value
    • Options Pricing Models
    • Option Greeks
    • Put-Call Parity
    • Payoff Diagrams  
    0100pm Lunch
    0200pm Trading Strategies with Options 
    • Directional Strategies Using Single Options
    • Spread Trades
    • Volatility Strategies
    • Synthetic Strategies  
    0345pm Refreshments
    0400pm

    Trading Strategies with Options (cont’)

    • Dynamic Hedging Using Option Delta
    • Managing an Options Portfolio   
    0530pm End of Day Two

    DAY THREE

    0900am Trading Options in Malaysia 
    • Warrants
    • Options on FTSE Bursa Malaysia KLCI Futures Contract (OKLI)
    • Options on Crude Palm Oil Futures Contract (OCPO)
    • Use of Options in Portfolio Management
    1030am Refreshments
    1045am Revision and Feedback Session on Set of Questions
    1230pm End of Day Three
  • Programme Fees

    For fee enquiries and registration, please contact +603-6204 8664 / 8263 / 8857, or email us at sidc@sidc.com.my