Because of COVID-19, many providers are cancelling or postponing in-person programs or providing online participation options.
We are happy to help you find a suitable online alternative.
Who should attend
This course is suitable for you if you want to know more about metals futures and options, and the management of price risk on the LME. It is advised that you take Introduction to the LME before attending this course to fully benefit from this session.
About the course
This course represents module 2 of the LME 2-day Introductory Course (Modular Course)
The LME’s 2-day introductory course is made up of two separately bookable modules:
- Day 1: Introduction to the LME
- Day 2: Hedging with Futures & Options
This course aims to provide a thorough understanding of the basics of hedging with futures and options, covering the market terminology, pricing, trading strategies and margining of LME contracts. Topics include how to lock-in future selling and purchasing prices, causes and management of price volatility as well as different hedging strategies.
New add-on day: Introduction to Physical Trading and LME Warehousing You may also be interested in attending a third day of training to complement what you learn in the 2-Day Introductory Course. The add-on day focuses on physical trading processes and LME warehousing operations.
What will you learn
- Learn how effective price risk management can be achieved with LME contracts
- Understand the benefits of hedging with futures
- Develop a knowledge of option hedging strategies and their outcomes
- Work through interactive workshops on hedging futures & options.
Hedging with Futures and Options
- Basic concepts, uses and benefits of hedging with futures
- Basic hedging examples
- Contango and backwardation
- Setting up a hedging team
- Hedging with Monthly Average Futures
- Basic concepts, uses and benefits of hedging with options
- Options terminology
- Risk implications and motives
- Options pricing models
- Selling an option
Robert is among the world’s most highly recognized commodity risk management educators and a long-time consultant to global industry. His unique insight and wisdom have been developed through 38 years of accumulated experience with base and ferrous metals, energy, soft commodities, shipping and c...