Introduction to Derivatives and Risk Management - Online

Introducing the City takes participants behind the elegant facades of the great financial institutions to reveal the City of London as a major center of global banking and finance. This module explores the evolution of derivatives as risk management instruments.

This course replicates the content from lesson 8 of the course Introducing the City - Online

This is an asynchronous eLearning course that can be accessed 24/7 from any internet enabled computer.


Newcomers to the securities industry, traders, salespeople, back office professionals, staff assistants, compliance staff, auditors and IT professionals.
Students will be able to:
  • Identify the fundamentals and uses of futures contracts
  • Recognise the basics of options contracts: the difference between calls and puts, and using them to manage risk
  • Discuss how and why swaps are used
  • Identify key considerations in evaluating suitable counterparties
Introduction to Derivatives and Risk Management
  • Evolution of derivatives as risk management instruments
  • Futures contracts
  • Options contracts
  • Swaps