Introduction to the London Metal Exchange (LME) and Hedging

Description

This course offers you a solid introduction to the services provided by the London Metal Exchange and demonstrates how these services can improve your organisation’s approach to price risk management. It provides a practical overview of operations, structure, products, trading terminology and procedures. Both theoretical and practical skills developed at this course can be applied easily in the workplace.

What you will learn

• Become familiar with the LME’s prompt date structure and trading procedures
• Gain a full understanding of the LME’s market terminology
• Understand the benefits of the delivery process used by the LME
• Gain an understanding of the benefits of clearing and the role of LME Clear
• Learn how to access the LME through member firms and the role of a broker
• Understand what futures and options are
• What it means for a contract to be physically settled or cash-settled, and how to use each type
• How to identify the risk position of a company
• How to reduce risk using futures and options
• Differentiate between types of hedges and choose the right hedging instrument
• What carries are, and what borrowing and lending mean
• Basics of option pricing