7 Emerging trends in derivatives markets

The derivatives market is the money market for derivatives, which are financial instruments generated from other types of assets, such as futures contracts or options. The derivatives market is separated into two parts: exchange-traded derivatives and over-the-counter derivatives.

best investment banking courses with placement in IndiaA derivative is a sophisticated sort of financial security that is agreed upon by more than two parties.

Traders utilize derivatives to get access to certain marketplaces and trade various assets.

The most widely known underlying assets for derivatives include currencies, stocks, bonds, commodities, interest rates, etc.

Contract values are determined by changes in the underlying asset’s price.

 

 7 Emerging Trends in the Derivatives Market:

Artificial Intelligence in Trading

 The derivative market is an essential component of financial services; it is a vast worldwide hut with ample capacity to accommodate cutting-edge technologies. Blockchain, artificial intelligence, and robots are already aiming towards it.

We all know that practically any asset may be traded in the derivatives market as futures and options. However, the intricacy of these instruments presents difficulties for investors. Reliable pricing solutions are essential due to continually changing market dynamics and regulatory restrictions.

A competent pricing tool is required by everyone from buy-side and sell-side trading desks to adherence, pricing, and accounting departments, among others. The most popular solutions in the market have some limits that must be overlooked.

For example, the answers are so complex that they must first be taught in order to be used. These technologies are so expensive that not everyone can manage to benefit from them; also, because of their vast size, they are confined to endpoints and can only be used with a few devices. Consider the following instances for better elaboration.

Based on the current SEBI rules, foreign investors or EFIs are participating in commodity derivatives. (For example — cotton exchange/trading, trading in metals such as nickel and zinc). Trading in fossil fuels such as natural gas and crude oil has seen a rise. The demand for these is booming like never before.

Emphasizing futures derivatives and forwards derivatives when deciding upon contracts. A major focus is on individual securities in Indian and even foreign markets or exchanges, new sets of compliances in foreign markets as well as Indian markets (especially when it comes to bonds and percentages in the agricultural sector)

Crypto derivatives are again gaining the spotlight and Indian investors are shifting towards modern trends or derivatives.

Physical settling of stock derivatives — It’s been determined that the physical setting of all stock derivatives will be made mandatory. Cash-settled stocks will be listed in decreasing order, based on daily market capitalization aggregated for the month of December 2018. SEBI has stated that in 2019, the worst 50 derivatives equities would be moved to delivery resolution every quarter.

 Conclusion

 Financial derivatives have taken a prominent place among all financial instruments (products) as a result of innovation and revolutionizing the landscape. Derivatives are financial instruments that help dealers manage risk and profit. It aids in the transfer of risk from one to the next.

Learn investment banking online to gain better insights into the derivatives markets and become an expert. Pursuing investment banking courses online will help you juggle between your work as well academics, seamlessly, and that will give you the right push you need for a successful career.

Related Articles:

Pros & cons of Derivatives Markets

Why choose a career in Derivatives Markets?

How are Derivatives Changing Markets?

Here’s why learning about derivatives is essential to begin a career in the capital markets

The Art of Managing Risk: Describe the Key Principles for Investment Bankers

In the world of finance, managing risk is a fundamental aspect of investment gubanking. As an investment banker, you play a crucial role in assessing and mitigating risks associated with various financial transactions. To excel in this field, you must understand the fundamental principles of risk management. This article explores the art of managing risk. It outlines the essential principles you should embrace to navigate the complex finance world successfully.

Principles For Risk Management Process

Due Diligence and Research

Thorough due diligence and extensive research are essential components of an effective risk management process in investment banking. You must diligently investigate and analyse potential risks associated with your investment opportunities, corporate mergers, or financial transactions. In-depth research helps you identify red flags, evaluate market conditions, assess regulatory compliance, and make informed decisions.

Diversification

Diversification is a time-tested principle that helps you in the risk management process. By spreading your investments across different asset classes, industries, and regions, you can reduce the impact of potential losses. By diversifying your portfolios, you can mitigate risks associated with specific sectors or economic fluctuations. This ensures a more balanced and resilient investment strategy.

Risk-Reward Tradeoff

As an investment banker, you understand the crucial relationship between risk and reward. Higher returns often come with higher risks. Balancing risk and reward is crucial. You assess the potential gains against the associated risks to determine whether an investment is worth pursuing. This guides your decision-making process, ensuring that the potential rewards justify risks.

Constant Monitoring and Surveillance

Proactive monitoring and surveillance are critical to managing risk effectively. You must continuously monitor market trends, regulatory changes, and the financial health of companies. By staying vigilant and alert, you can identify potential risks quickly and take appropriate actions to reduce them. Regular monitoring helps you avoid emerging threats and adapt your strategies accordingly.

Stress Testing and Scenario Analysis

You employ stress testing and scenario analysis to assess the impact of adverse market conditions on your investment portfolios. By simulating various scenarios, you can evaluate the resilience of your investments and identify potential vulnerabilities. This principle helps you understand the potential risks in extreme market conditions. You can develop contingency plans to mitigate them.

Certified Investment Banking Operations Professional Course by Imarticus Learning

Imarticus Learning offers a comprehensive Certified Investment Banking Operations Professional program to equip you with job-specific skills and knowledge. This 150+ hours online course provides a solid foundation in investment banking operations and risk management. The course focuses on developing the practical skills required for investment banking operations. This includes risk assessment, trade settlement, reconciliation, and regulatory compliance. You will gain hands-on experience through real-world projects and case studies. Following are the various benefits of the Certified Investment Banking Operations Professional course:

Investment Banking course

The course curriculum is designed by industry experts. This ensures alignment with the current practices and demands of the investment banking sector. It covers key concepts, regulations, and industry best practices. This provides a comprehensive understanding of investment banking operations.

Upon successful completion of the course, you receive a certification that is recognized by the industry. This certification validates your expertise and enhances your employability in the competitive job market.

Imarticus Learning provides a 100% job interview guarantee to participants of the Certified Investment Banking Operations Professional course. The program offers placement assistance and prepares you for interviews. This increases your chances of securing rewarding job opportunities.

The course boasts an extensive alumni network of professionals working with top companies in the investment banking sector, such as UBS, JP Morgan, Morgan Stanley, Citi Bank, and Genpact. You benefit from the network’s support and industry connections. This can provide valuable insights, networking opportunities, and potential career prospects in top organizations.

The Certified Investment Banking Operations Professional course emphasizes practical learning through real-world projects and case studies. You gain hands-on experience in applying risk management principles, analyzing investment opportunities, and managing operational processes. This prepares you for the challenges of the investment banking industry.

Final Thoughts

Effective risk management is a critical skill for investment bankers. You can ensure the protection of investments and the achievement of desired financial outcomes. You embrace key principles such as due diligence, diversification, risk-reward tradeoff, constant monitoring, stress testing, and scenario analysis. This guides you to navigate the complexities of the financial landscape with confidence.

The Certified Investment Banking Operations Professional course by Imarticus Learning equips you with the necessary skills and knowledge to excel in investment banking operations and risk management. This course has industry-oriented curriculum, industry-recognized certification, job interview guarantee, practical learning approach, and alumni network working in leading companies. It also offers a comprehensive pathway to a successful career in investment banking. By mastering the art of risk management, you can thrive in the dynamic world of finance. You can contribute to the growth and stability of financial institutions.

I enrolled for an investment banking course with job-interview guarantee: How I landed a job

Growing up I always had a fascination for numbers. When my father discussed business with his friends in the living room, I would listen carefully and try to understand their conversations. I did not excel in mathematics in school, but I would do my best to understand the formulas.

My family thought I would opt for a career in engineering. But I did not get the best rank and would have had to enrol in an unknown engineering institute. Instead, I took commerce and got my first job working at a bank. Here, my role was to help customers with their bank accounts.

Gradually, I got to know that there was something better I could do for my career. I found out that large-scale businesses and high net-worth individuals require consultancy services to enable their capital and businesses to grow. I then made up my mind to learn investment banking, a specialised segment of banking.

Discovering investment banking

best digital marketing courses

As I grew to understand investment banking in detail, I became completely fascinated by the sheer size of the businesses I could work with. These companies were worth billions of dollars, and I had the chance to play a pivotal role in helping them navigate various scenarios such as mergers and acquisitions, investments, and corporate restructuring. Another perk was that investment bankers earned lucrative compensation and could build impressive networks. I decided that this would be my next career pivot.

Building specialist skills

I began applying for investment banking entry-level job roles. However, I was unsuccessful in landing a job. Recruiters told me I did not have the required specialist skills, even though I had a passion for the job. Before I could be an investment banker I needed to invest in myself, they told me. I realised that I needed to complete a specialised degree or program to help me achieve my goal of being an investment banker.

I would have to build up an extensive knowledge of financial markets, economic trends, regulations related to securities, and mergers and acquisitions. I needed to learn how to read complex financial documents. I also had to build analytical skills, presentation skills and specialist financial abilities.

Choosing an investment banking course with placement

I began researching various investment banking courses. I was not keen to take up a traditional master of business administration (MBA) degree because it required me to take one or two years off from work and it was also extremely expensive. However, I discovered a specialised investment banking course with placement support and decided to pursue it. There are several reasons why I decided to enrol in a certified investment banking program:

The program covers the full spectrum of subjects relevant to investment banking.

It offers flexibility for professionals to learn based on their schedules. For example, you can pursue the entire program online via instructor-led live sessions. Alternatively, you can pursue it offline at a centre in your city.

The faculty is highly experienced and come with extensive industry experience.

The program duration is just two months if you go for full-time training during the week. Alternatively, it extends up to three months if you opt for weekend classes.

The placement guarantee ensures you have opportunities to secure jobs in some of the top investment banks in the world.

My learning approach

I decided to pursue the investment banking program online and go for weekend classes. This approach allowed me to continue my day job and keep earning as I learned. I also made use of the 0% no-cost EMI payment option, which allowed me to pay in instalments with no additional interest. However, these are not the only benefits of investment banking courses with job-interview services.

Landing a dream job Interview Opportunities

When pursuing any professional course, one of the outcomes you seek is to get good job interview opportunities. The live training I received at the investment banking course was especially beneficial for me. It taught me that even if you are an expert in various theoretical concepts, applying them in real life is a whole other challenge.

I attended several job interviews as part of the placement process. During the interviews, I was able to engage in concrete discussions with the interviewer’s thanks to my extensive training. The confidence I gained through the live training in the course also helped me communicate my ideas to the recruiters more articulately.

Conclusion

With innovations in technology, the increase in the number of new businesses, and with older businesses continuing to reinvent themselves, the sky is the limit for an ambitious investment banker. It has been a long-term dream of mine to join this dynamic world and I am excited to keep learning new things every day. Today, I am proud to have the term investment banker on my resume.

To know about Imarticus’ investment banking courses with job interviews, chat with our experts online or visit one of our training centres in Mumbai, Thane, Pune, Chennai, Bengaluru, Delhi, Gurgaon or Ahmedabad.

Top 5 careers in money market

The money market is the most lucrative field. It offers a host of career opportunities with high pay and excellent job security. Whether you’re looking for a high-paying, stable job with amazing benefits and long-term career prospects in the money market – we’ve got it right here.

This blog will discuss the top 5 careers in the money market for 2022. These jobs are in demand and offer excellent pay and benefits. So, without further ado, let’s get started!

A career in the money market is a perfect choice if you look for a job with high pay and excellent benefits. It offers tremendous flexibility and the opportunity to learn new skills that can help you advance your career. 

Here are the five careers in the money market for 2022:

An Investment Banker

It is the most popular career choice in the money market. Investment bankers are responsible for helping companies raise capital by issuing and selling securities. They also advise clients on financial matters such as mergers and acquisitions. 

Stockbroker

A stockbroker can make up to six figures a year, depending on experience and qualifications. Stockbrokers help clients buy or sell stocks by connecting them with other people interested in buying or selling those same shares of ownership rights in corporations. They also provide advice on which stocks to buy or sell.

Financial Analyst

A career as a financial analyst is an excellent choice if you want to work in the money market. They are responsible for providing information and analysis on the financial health of companies. They make recommendations to management on how to improve the company’s finances.  

Financial Manager

A career as a financial manager is another great option in the money market. They develop and implement strategies to increase revenue and reduce costs. Their average salary is around  ₹991,180 per annum.

Financial Advisor

A financial advisor can make up to six figures a year, depending on experience and qualifications. Financial advisors provide advice on investments, taxes, and insurance policies. They also help people manage their finances, such as retirement planning or saving for college tuition costs. Their average salary is around ₹4,25,271 per year.

These are just some of the top careers in the money market for 2022. There are many different options available, but these five will give you an idea of what types of jobs might be available if you choose this path!

Explore courses for investment banking with Imarticus Learning

This 180-hour CIBOP (Certified Investment Banking Operations Professional) course will comprehensively equip students for a career in investment banking operations, treasury, or clearing services. Learn investment banking by understanding complex securities and derivative products, their trade-lifecycles, and the activities associated with investment banking operations.

Due to this partnership, learners interested in pursuing careers in investment banking will access the LSE Group Academy’s best-in-class learning content, given by top-rated professors.

Course Benefits For Learners:

  • Students at Imarticus Learning work in most of the world’s investment banks with the CIBOP accreditation, which the London Stock Exchange recognizes!
  • Impress employers and demonstrate expertise by enrolling in investment banking courses with job interviews  guarantees approved by India’s prestigious academic institutions.Investment Banking Course
  • Our investment banking course covers complicated securities, derivative instruments, and the trading lifecycles and functions of these assets.

Contact us through chat support, or drive to one of our training centers in Mumbai, Thane, Pune, Chennai, Bengaluru, Delhi, and Gurgaon.

The best career path in 2022: Certifications for valuation and equity research

What is the role of valuation and equity research? Equity research provides correct information to the stock market. It is an analysis of the business stock, its industry, and stocks in similar groups to estimate earnings and valuation. This analysis is crucial for the accurate valuation of the stock as it prevents stock from being overvalued or undervalued.

At Imarticus, through the IIML course, we prepare future analysts who accurately analyze financial services and capital markets.

Financial Risk Management Course

Every operating business entity has to face risk, but if you know how to manage the risks, you can certainly stop the revenue leakage. Managing financial risk means managing the current and anticipated financial threats. It also helps formulate a good and planned strategy to incur profits and stop the losses.

The course in financial risk management at Imarticus enhances the horizon of financial markets. It helps understand the concept of financial risks and magnifies the knowledge about the working of various financial institutions and the stock market. It also helps to increase the credit and ability of financial risk managers to increase their earning potential. 

The managers trained to anticipate financial risk and evaluate the stock market suggest the best possible remedies to a business entity or a sole businessman to avoid potential risk and financial losses. At Imarticus, through the IIML course, we train you to identify the chances of risk exposure. We further teach you how to quantify the firm’s exposure to the possible financial risk.

An excellent financial risk manager needs to quantify the risk and plan the strategies accordingly through proper financial risk management techniques.

At Imarticus, we teach our students how to keep adequate insurance to keep the firm safe and maintain dual emergency funds. Diversification of investment is another critical tool for good financial risk management, and we teach the ways for multiple diverse investments.

Identifying the financial risk is essential but prioritizing the risk according to business problems is equally important. For learning this technique, you should know to differentiate between liquidity, market, credit, operational, and legal risks.

Structured Finance Training

The advanced management program in financial services and capital market through IIML at Imarticus is a way to specialize in financial management. The students will experience the stimulations and get exposure to numerous zenith projects. Imarticus is keen to produce successful financial risk managers, and for this, the institutions have designed a unique curriculum. The campus interview and selection highlight this financial risk management course.

The students will uncover different financial strategies essential to handling and preparing for financial risk. In this regard, they will learn how to measure financial risk and thereby control it. To be an expert in financial trouble, insight, and knowledge on every liability are essential.

Further, at Imarticus, we teach the importance of skills and their enhancement. Our course through IIML will assist in controlling and coordinating unnecessary business data. It will help develop a better understanding of performance management and profit sources.

Financial risk management is a daunting task, and this you can do only by taking the right decisions and regularizing your financial investment on a slow pace and a regular basis.