CFA CFA General Doing Derivatives BEFORE Equity & Fixed Income

Doing Derivatives BEFORE Equity & Fixed Income

  • This topic has 5 replies, 6 voices, and was last updated Mar-17 by Snippy.
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    • CFAin80Days
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      In Peter Olinto’s introductory video for Elan, he recommends doing Derivatives before Equity and Fixed Income for students with no finance/accounting backgrounds. Do you agree with this? Would it be difficult to understand Derivatives if you haven’t covered the material in preceding study sessions?

    • Reena
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      @CFAin80days, I don’t think it matters too much. Derivatives may be more difficult for non finance/accounting background as you have never seen it before, but it focuses on introducing you to various type of financial derivatives, and in that sense there’s lots to grasp as it’s new.

      Equities in Level 1 focuses on valuation and dividend discount model, doesn’t have too much relation to Derivatives. Fixed Income has more of a connection to derivatives, as you touch things like MBS which contain some derivatives.

      So all in all – it doesn’t matter too much. But if you prefer, do Derivatives before Fixed Income.

      Hope this helps!

    • imdnextbuffet
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      @CFAin80days best thing is just run through those 3 books see which one’s tough start doing that then go to the easier ones. Like always keep the cherry from the top of the cake for last 😀

    • Zee Tan
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      Easiest or hardest first is a bit subjective I think. I always feel ‘easiest first’ is the best, because it keeps your spirits up, it eases you into it, and you may learn things along the way that might be useful for harder topics later.

    • vincentt
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      as far as I could remember, derivatives isn’t really depending on equities and fixed income so it’s entirely fine to work on it but if it’s for level 1 i would recommend you to cover heavier weighting topics first (e.g. fixed income > equity > derivatives), but of course it’s entirely up to you.

    • Snippy
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      I agree with @vincentt. I finished derivatives after completing equities and fixed income. In the end, it’s your individual choice/opinion that matters.

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