CISI Derivatives (CISI) study guide
CISI Derivatives · Work through your exam, one topic at a time.
The CISI Derivatives exam is one of the professional qualifications offered by the Chartered Institute for Securities & Investment (CISI), a financial services professional body whose head office is at 20 Fenchurch Street, London EC3M 3BY. CISI describes itself as serving over 54,000 members worldwide and offers a broad range of professional qualifications, professional assessments, learning materials and exam booking through its website. The Derivatives qualification is aimed at practitioners who need a working command of derivative instruments and their markets - typically staff in trading, sales, treasury, risk, compliance, operations and investment support roles, as well as candidates building toward regulated roles where derivative knowledge is expected. The syllabus is organised into four equally weighted areas: derivatives fundamentals and market structure; futures and forwards; options; and swaps and risk management. The CISI Derivatives study guide has 4 sections and about 1,652 words.
01Derivatives Fundamentals and Market Structure
Derivatives are contracts whose value derives from an underlying asset, reference rate, index or event, so they are not a separate asset class. This domain tests definitions, commercial purpose and market plumbing: who trades, where trades execute, how they are cleared and what regulation requires.
406 words, about 2 min02Futures and Forwards
Futures and forwards both lock in a price today for settlement or delivery later. The exam tests contract mechanics, margining, fair-value pricing and the basis relationships that show whether a hedge is working.
415 words, about 2 min03Options
Options give the buyer a right, not an obligation, to buy or sell at a fixed strike before or at expiry. The exam tests payoff construction, premium and breakeven arithmetic, put-call parity, the pricing inputs and the Greeks.
416 words, about 2 min04Swaps and Risk Management
Swaps exchange cash flows over time, usually on a notional principal that is not itself exchanged in a plain vanilla interest rate swap. The exam tests swap mechanics, valuation and par rates, plus the risk-management toolkit: hedging, collateral, counterparty exposure and the limits of each measure.
415 words, about 2 min