Electronic and Algorithmic Trading
In this training we deal with all the questions related to modern electronic and algorithmic trading on exchanges.
In scope of this training the questions related to definition of the option, main attributes of the option’s trade, types of options, option exercise styles, types of options with respect to the underlying asset option is written on, valuation of options, option Greeks and their usage for risk management of option trades, main option trading strategies, exotic options types are covered.
6 hours
English
Online
To be determined
Options are versatile financial instruments used for hedging risk or speculation. This course provides a comprehensive understanding of options, including their definition, key attributes, various types, and the mechanics of options trading. Participants will delve into the intricacies of option pricing, the factors affecting option prices, and the Black-Scholes pricing model. The course also covers the Greek letters (Greeks) used for risk management in options trading, explores various trading strategies, and introduces exotic options.
The course starts with a clear definition of options and their fundamental attributes, including the distinction between put and call options. Participants will learn about different exercise styles (American and European) and the classification of options based on the underlying asset. This section also includes detailed examples to illustrate these concepts.
Following the basics, the course moves on to option pricing, discussing the primary factors that influence option prices and introducing the Black-Scholes pricing model. Participants will gain insight into how options are valued and the theoretical underpinnings of these valuations. The course then covers the Greeks—Delta, Gamma, Theta, Vega, and Rho—explaining how these metrics are used to manage risk in options trading. Participants will learn practical applications of the Greeks in various trading scenarios.
Next, the course explores main option trading strategies, including both simple and complex strategies. This section provides a practical guide to implementing these strategies in real trading situations. Finally, the course introduces exotic options, explaining their unique characteristics and how they differ from standard options. Participants will become familiar with various types of exotic options available in the markets.
By the end of this course, participants will be able to:
- Define what an option contract is and identify its main attributes.
- Distinguish between put and call options and understand their uses.
- Explain different exercise styles for options and classify options based on the underlying asset.
- Understand the specifications of exchange-traded option contracts.
- Describe the main factors that influence option prices and apply the Black-Scholes pricing model.
- Utilize the Greeks for risk management in option trading.
- Implement various option trading strategies effectively.
- Recognize and understand the main types of exotic options available in the markets.
This comprehensive course equips participants with the knowledge and skills needed to navigate the complex world of options trading, manage risks effectively, and implement successful trading strategies.
To give the audience information on what is an option contract, what main attributes an option contract has, what exercise styles are available for options, classification of options with respect to the underlying asset, how the option contract specification looks like for exchange-traded option contract, how options pricing is done and what are the main factors influencing the price of an option, what are Greeks and how they are used for risk management of options trades, what the main option trading strategies, what is exotic option and what are main exotic option types available on the markets.