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5 - FNB - Finance and Banking

FNB 136 - FX & Commodity Hedging Strategies

Code Start Date Duration Venue
FNB 136 06 November 2023 5 Days Istanbul Registration Form Link
FNB 136 25 December 2023 5 Days Istanbul Registration Form Link
Please contact us for fees


Course Description

This course aims to explain comprehensively the core and vital basis on the hedging strategies mainly specified on the hedging of FX and commodities. It enables participants to identify the areas of hedging and applying practical hedging strategies to control FX and Commodity risks. 

Course Objectives

  • Identifying Hedging, areas of hedging and related terminology
  • Understanding the mechnanics of hedging, main tools and down side risks
  • Getting Insights about the main essentials of FX and Commodity  instruments
  • Understanding practical and affordable Hedging Strategies

Who Should Attend?

  • Managers 
  • Supervisors
  • Professionals and leaders responsible from hedging transactions and have brief knowledge about derivatives
  • Anyone having financial background who is involved in FX or/and Commodity(emtia) hedging and have brief knowledge about derivatives
  • Anyone who has taken the course "Introduction to Financial  Derivatives: Options, Futures and Swaps"

Course Details/Schedule

Day 1

  • What is hedging?
  • Areas of hedging and their risks
  • Downsides of hedging 
  • Absolute and Relative Return
  • Underlying Securities and their downside risks

Day 2

  • Hedging Techniques 
  • Types of Hedging
  • Risk and Return Tradeoff
  • FX underlyings
  • Cover Ratio
  • Break Even Analysis
  • Scenario Analysis
  • Case Studies

Day 3

  • Forward Market Hedge
  • Money Market Hedge
  • Risk Shifting
  • Hedging through Asset Allocation
  • Hedging through structures
  • Hedging through Options
  • Strike Price, Price Protection and Purchase Price
  • Case Studies

Day 4

  • Pricing Theory and Practice
  • Volatility Premium, Index Drift, Time Decay
  • Expected Payout
  • Time Extension Put Rolling
  • Spread Hedging
  • Calender Spreads
  • Rebalancing
  • Case Studies

Day 5

  • FX Money & FX Exchanges
  • Commodity Money& Commodity Exchanges
  • Long and short future hedges on FX & commodity
  • The FX Risk impact on Commodity Risk 
  • Structured Derivatives in Hedging
  • Comparative analysis of Hedging Tools  for FX and Coomodity
  • Case Studies and Simulations