Futures and forwards (Foundation)

By the end of this course, participants will be able to:

• define the general characteristics of forwards and futures;
• gain in-depth understanding of how the instrument operates;
• list how it can best be used on the market, be it in isolation or in combination with other instruments;
• understand the valuation method and what can impact forwards' and futures's value;
• identify major risks associated and determine controls that may mitigate them.

• Principle of a forward or future contract, based on the yield curve
• Use of forward or future contract: hedging or speculative trading purposes
• Forwards contracts: the main types of forwards are presented, namely:
  • on money market rates: FRAs
  • on currencies (forex forward), including NDFs contracts
  • on equities and on bonds
• Futures contracts:
  • the exchange clearing room and margining system
  • theoretical vs market price of a future
  • invoiced amount at delivery
  • analysis of futures contracts

This course content is presented in an attractive and understandable manner: it is illustrated with numerous real market examples. The course aims to provide a clear and thorough understanding of the considered instrument, with core mathematical concepts introduced when addressing pricing.

This training is coordinated by Samir Moussaoui, Director at PwC Luxembourg.

The different modules will be animated by experts in derivatives.

Samir helps lead our AVS practice in managing and delivering a diverse range of alternative investments and assets valuation engagements, in the context of assurance and non-assurance services, to local and international clients and PwC offices. He has exposure to a wide range of valuation methodologies such as discounted cash flow models, trading and transaction multiple valuations, net asset value approach as well as milestone analyses, primarily in the context of financial reporting.

Samir is Chartered Financial Analyst (CFA) and Chartered Valuation Surveyor (MRICS).