Comprehensive course analysis
About the course
This course demonstrates how the LME's services can improve your approach to Price Risk Management
The Introduction to the London Metal Exchange and Hedging: Two Days (Singapore only) will provide you with an understanding of the key services provided by the LME and demonstrate how these services can improve your organisation’s approach to price risk management. Both theoretical and practical skills developed at this course can be applied easily in the workplace.
It provides an overview of operations, structure, products, trading terminology and procedures. The course will also enhance your knowledge 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.
This course is made up of two separately bookable modules:
- Day 1: Introduction to the London Metal Exchange: One Day
- Day 2: Hedging with LME Futures and Options: One Day (Singapore Only)
Introduction to the LME
- History, organisation and primary services of the LME
- Pricing methodology
- Introduction to hedging
- Prompt date structure and other LME terminology
- LME contracts
- Warehousing and fundamentals of delivery
- Trading at the LME
- Understanding the role of an LME broker/dealer
- Clearing and LME Clear
- Regulation of the LME
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...
Videos and materials
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.