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Understanding Financial Markets
Market transactions require a clear understanding of instruments and their associated risks. Connect financial mechanisms with their effects on positions to analyse exposures more effectively. Develop reference points to assess situations and support discussions with specialists.
- Duration
- 2 days 14 hours
- Code
- FMB13FR Code
Presentation
Finance is a complex field, making it essential to master the fundamentals of how financial markets work.
Objectives
This course aims to help you:
- Understand the role of financial markets in the economy and asset management.
- Interpret the prices and associated risks of major financial instruments.
- Distinguish the roles and organisation of different market participants.
Program
1. What are markets for?
A. Financial market participants, their motivations and relationships (governments, companies, individuals, banks, asset management companies, etc.).
- Financial market functions.
- Investment and financing: the primary market.
- Risk transfer.
B. Market participants.
- Trading rooms.
- The involvement of asset management companies.
- Hedge funds.
- The role and activities of banks.
- Regulatory bodies: AMF, ACP and ECB.
C. Types of cash and derivatives markets (equities, interest rates, foreign exchange, credit and commodities, etc.).
D. Case study:
Return analysis.
- By asset class.
- By geographical region.
- By benchmark index.
2. Market products: how do they work?
A. Cash instruments.
- Equities.
- Money market and bond products.
- Foreign exchange products.
B. Firm-commitment derivatives.
- FRAs and futures.
- CFDs.
- Currency, interest rate and credit swaps (CDS).
C. Options, from the simplest to the most complex.
D. Case study:
How does a manager use derivatives to speculate or hedge?
- Structured products.
- Essential building blocks.
- Assembly.
E. Case study:
How can a capital-guaranteed product be built simply?
- ETFs.
3. Measuring prices and risks
A. The price of a financial product: parameters and calculation methods.
B. Market, counterparty, credit and operational risks: how can they be measured?
C. Case study.
- Understand a bond's interest rate risk.
- Analyse an option's risk.
Audience
Finance directors, bank branch managers and insurers.
Prerequisites
Basic knowledge of financial markets and their terminology (codes, rules, etc.) is required.
Teaching and assessment methods
- Initial skills assessment
- Training materials provided to participants
- Continuous assessment throughout the course
- End-of-course feedback questionnaire
- Combination of theory and practical application
- Attendance records
- Post-course follow-up evaluation
Dates and sessions
Choose the date and delivery format that suit you.
No upcoming sessions are currently available.