Commodities, Derivatives and Structured Products

Forwards & Futures - Part 1 (2019)


This eCourse consists of two modules. Module 1 looks at the key differences in the operation of forwards and futures markets where forward and futures contracts both allow the purchase or sale of a specified asset at a certain point in the future. It also examines the pricing of these instruments.

Module 2 looks at the determination of the fair forward price for an asset and the fair pricing of a government bond future.


On completion of this course, you will be able to:
- Recognize the key differences between forward and futures contracts
- Identify the main factors influencing forward prices and rates
- Recall the main method used to settle forwards and futures, including cash settlement and physical settlement
- Identify the key factors involved in the fair pricing of a forward and the main exceptions to the theoretical forward pricing
- Calculate the fair price of a government bond future
- Recognize the importance of cash and carry trades in fair pricing of government bond futures

Content Highlight

Module 1: Forwards & Futures – Markets
Topic 1: Features of Forwards & Futures
Topic 2: Forward Prices & Rates
Topic 3: Settlement Mechanisms

Module 2: Forwards & Futures - Pricing
Topic 1: Fair Forward Pricing
Topic 2: Government Bond Futures Pricing

Administrative Details

Relevant Subject
Type 2 - Dealing in futures contracts
Type 5 - Advising on futures contracts
SFC:1.50, PWMA:1.50
All Member: HKD480
Chinese Securities Association of Hong Kong (HKCSA): HKD505
Non-Member: HKD720
Staff of Corporate Member: HKD480