IFMP Financial Derivative Traders Certification (FDTC), Pakistan study plan

Define forwards, futures, options, and swaps and state for each the payoff formula, obligation structure, and one Pakistani market use case

Compute mark-to-market value of a forward contract at expiry and before expiry given spot, strike, and carry cost inputs

Distinguish exchange-traded from OTC instruments and list three operational consequences of each for a Pakistani broker

Explain contango, backwardation, and cost-of-carry pricing for futures on a storable commodity

Price European call and put options with a two-step binomial tree and verify against put-call parity

Interpret delta, gamma, theta, vega, and rho and state the sign and magnitude of each for a long call and a short put

Describe the mechanics of a plain-vanilla interest rate swap and compute the net settlement for both legs from given fixed and floating rates

Identify the payoff profile of a covered call and a protective put and explain when a hedger would choose each

Map the roles of SECP, the Pakistan Stock Exchange, and the National Clearing Company of Pakistan Limited across listing, trading, and clearing

Summarize the licensing and conduct requirements the FDTC regime imposes on derivative brokers, traders, and sales staff

Explain the client onboarding chain for a derivative account: KYC, risk disclosure, suitability, and margin agreement

Outline the regulatory reporting and record-keeping duties that apply to derivative trades executed on a Pakistani exchange

Apply the market-abuse prohibitions on insider dealing, front-running, and spoofing to three constructed trading scenarios and justify each verdict

Distinguish permissible market making from manipulative layering using the intent and effect tests

Explain how position limits and margin requirements act as prudential controls on derivative exposure

Describe the complaint-handling and dispute-resolution route available to a client of a Pakistani derivative broker

Compute initial margin, maintenance margin, and the margin call amount for a futures position given contract size, price, and margin percentages

Calculate VaR for a single position using the variance-covariance method and state three limitations of that estimate

Explain how delta hedging neutralizes directional risk and compute the hedge ratio for a given option position

Apply stop-loss, position sizing, and diversification rules to a sample portfolio and quantify the effect on maximum drawdown

Trace the trade lifecycle from order entry to trade confirmation, novation, and final settlement on a Pakistani exchange

Explain the role of the clearing house as central counterparty and how novation transfers counterparty credit risk

Distinguish cash-settled from physically settled contracts and list the delivery obligations of each party

Reconcile a sample trade blotter against clearing-house records and identify three seeded discrepancies

Compute daily mark-to-market cash flows and the variation margin payable across a five-day price path

Explain the default waterfall of a clearing house and the purpose of the default fund and initial margin

Identify operational risk failures in three settlement scenarios (failed delivery, late margin, misbooked trade) and propose a control for each

Describe business-continuity and back-office segregation-of-duties requirements relevant to a derivative broker

Complete two timed full-length mock exams under exam conditions and record the score by domain

Re-drill every missed item from weeks 1-7 and close each error by restating the underlying rule or formula

Review the highest-weight formulas and regulatory thresholds in a single condensed revision sheet

Simulate explaining a derivative product and its risks to a retail client in under five minutes