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Derivative Markets Explained: How Financial Markets Work
133 students
Created byEric Kang
Last updated 12/2025
English

What you'll learn

  • This is an introductory course to provide a comprehensive understanding about financial markets, instruments and institutions.
  • This module covers a broad range of topics necessary to understand financial markets.
  • The students are expected to understand the basics of financial markets and systems.
  • The students can apply their learning to understand the real financial market situation or to study more advanced topics in finance.

Course content

2 sections5 lectures1h 31m total length
  • Welcome To Financial Markets: Derivative Markets Course!2:00

    Explore how futures and options help investors manage risk, speculate, and optimize returns. Understand futures contracts, margins, clearing houses, and the basics of call, put, American, and European options.

Requirements

  • Calculus
  • Some prior finance knowledge is a plus but not required.

Description

This module forms part of the full course “Master Financial Markets: From Basics to Advanced”. It is designed to provide learners with a clear and structured foundation in financial assets, financial markets, and financial institutions. Students who find this overview valuable are encouraged to continue with the full course, where each topic is explored in greater depth and applied to more advanced financial concepts.

Many students who started with this batch of lectures shared similar feedback. They said the material was understandable and explained well, even when the concepts initially felt challenging. They also appreciated the interesting real-world examples and practical knowledge provided in the lectures, especially how the topics were linked to what was happening at the time. For many learners, seeing others gain clarity and confidence from these lectures made the decision simple—if it worked for them, it’s worth trying too.

In this batch, we dive into derivative markets, a key part of modern finance. You’ll learn how derivatives like forwards, futures, and options allow investors and institutions to manage risk, speculate, and optimize returns. We break down how futures contracts work, including initial and variation margins, and how clearing houses guarantee contract performance, reducing default risk.

We also explore options, explaining the difference between call and put options, American vs. European options, and how option premiums work. By understanding these contracts, you’ll see how investors make strategic decisions and protect themselves in volatile markets.

Many learners have told me that once they understood derivative markets through these lectures, they could read market news, follow trading strategies, and understand risk like never before. If others with no prior background can gain this insight and confidence, you can too.

Let’s get started.

Who this course is for:

  • Beginner-level finance learners.
  • Intermediate-level finance learners seeking solid foundational knowledge in finance.
  • Advanced-level finance learners seeking more intuitive and structured knowledge of finance.