Financial Derivatives Trading Using Bloomberg Terminals (AUEB)

The "Derivatives Trading" program is designed to introduce participants to the basic principles, techniques, and professional applications of financial derivatives through a highly practical and applied educational approach. Unlike programs that are limited to a theoretical presentation of the relevant concepts, this program fully leverages the capabilities of the Athens University of Economics and Business’s Bloomberg Terminals, offering participants the opportunity to work in a real professional environment, using the same tools and data that banks, investment firms, insurance companies, asset management firms, and multinational corporations around the world.

Each participant is trained on an individual Bloomberg Terminal and gains direct access to real-time financial market data. Through guided exercises, practical examples, and comprehensive case studies, trainees become familiar with how derivatives markets operate and develop skills directly relevant to the demands of today’s job market. The training focuses not only on understanding the theoretical principles governing derivative financial instruments but also on the ability to apply them in real market conditions, where decision-making takes place under conditions of uncertainty, volatility, and constant changes in economic data.

The program systematically covers the most important categories of derivative financial instruments used internationally for hedging, portfolio management, and trading purposes. Specifically, it examines Forward and Futures Contracts, Options, Swaps, as well as specialized interest rate derivatives, such as Forward Rate Agreements (FRAs), Interest Rate Caps, Floors, and Swaptions. Emphasis is placed on the interest rate and foreign exchange markets, as they constitute the core activities of Treasury Departments, Trading Desks, and risk management units at banks and large corporations.

Throughout the program, participants develop a comprehensive understanding of the pricing and valuation mechanisms of derivatives. Starting with the logic of no-arbitrage pricing and the cost-of-carry model, they learn to calculate theoretical prices of futures contracts and understand the relationship between spot and derivatives markets. They are then introduced to the most widely used option pricing models, such as the Black-Scholes-Merton model and the Black model for interest rate derivatives, gaining an understanding of both the mathematical assumptions and their practical application in international markets.

In addition to initial pricing, students examine how derivatives are valued over their lifetime, how their value changes as market conditions shift, and how they can be used for effective financial risk management. Emphasis is placed on the use of derivatives for hedging purposes, as well as their use in investment or trading strategies.

Instruction is based on real-world professional scenarios that simulate situations encountered daily by executives in banks, businesses, and investment firms. Each thematic module is accompanied by guided case studies through which participants are asked to solve problems and make decisions using real market data. Examples include a company seeking to hedge currency risk from future foreign currency receipts, a bank wishing to protect itself from adverse interest rate movements, a treasury manager designing a comprehensive risk management strategy, or an investment firm evaluating alternative strategies for using options to manage volatility.

A central component of the program is the extensive use of the Bloomberg Terminal. Participants are trained in the use of specialized professional applications and functions of Bloomberg, which are widely used by financial market professionals. Through these applications, they gain the ability to price derivative products, analyze yield curves, evaluate products, examine volatility surfaces, and perform sensitivity analyses in real time.