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Layer 4 · Professional CertificationsCFA® Level 3Exam: CFA Institute

CFA® L3 — Derivatives & Risk Management

Hedging equity, currency, and rate risk; managing portfolios with futures, options, and swaps; tail-risk hedging strategies.

30 hours of content1 chaptersFree during Phase 1

Quick info

Layer
Professional Certifications
Track
CFA® Level 3
Estimated hours
30 hrs
Chapters
1
Exam body
CFA Institute
Cost on Trustner
Free
Full course material live

Every chapter below has Foundation, Deep Dive, and Advanced material — read in any order, expand each chapter to see the full content.

About this course

CFA L3 derivatives focus on portfolio-level applications: hedging, asset-class exposure, currency overlay, options-based strategies. ~5-10% weight.

Who this is for

  • CFA L3 candidates.
  • Portfolio managers using derivatives.
  • Risk officers.

What you'll learn

  • Hedging strategies — duration, beta, currency
  • Options strategies for portfolios — protective put, covered call, collar, straddle
  • Volatility-targeting overlays
  • Risk management framework

Course material — 1 chapters

Each chapter offers three tiers — Foundation for the core concept, Deep Dive for worked examples and practitioner depth, and Advanced for edge cases and exam tips. Click any chapter to expand.

  1. 1
    Reading 1

    Derivatives in portfolio management

    • Beta hedge using equity index futures
    • Duration hedge using bond futures
    • Currency overlay (forwards, options)
    • Options collars and protective puts
    ✓ Full chapter — read, examples, FAQ, MCQs

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