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:
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.
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.
Benefits for you
This course is ideal for delegates with little or no knowledge of non-ferrous metals futures and metals options and the management of price risk on the LME. It is aimed at miners, producers, smelters, refiners and recyclers; brokers, bankers, financiers, treasurers, CFOs, controllers and financial risk advisors; traders and merchants; fabricators and end users.
Benefits for your organisation
Organisations can benefit from having employees who fully understand how to use futures and traded options as part of a price risk management programme.
- Review of LME contracts and prompt date structure
- Price risk management – what is it?
- What is hedging?
- Hedging examples with futures
- Hedging examples with LME swaps
- LME Traded Options
- Hedging examples with options
- Traded Average Price Options (TAPOs)
- Questions and answers
Previous knowledge of the LME.