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Foreign Exchange Market

COURSE DESCRIPTION

This program will help you gain a comprehensive understanding of foreign exchange markets, the underlying theories governing foreign exchange, the instruments traded, spot and forward forex market and how to hedge forex risk using credit derivatives.

CERTIFICATION AWARDED

On successful completion of the program, you would be awarded the professional certification in “FOREIGN EXCHANGE MARKET” by Moody’s Analytics and EduEdgePro.

COURSE COLLATERALS AND HIGHLIGHTS

  • Comprehensive coverage on forex market’s structure and characteristics
  • Exhaustive reading material covering detailed 3 sections outlined below
  • Excel model on using currency derivatives to hedge forex risk
  • Pre-requisite material on mathematics for Finance
  • Concise and easy to understand content
  • Practical hands-on Forex Market useful for careers in forex market, treasury, forex trading etc.

COURSE OBJECTIVES

  • Understand Structure and methods of Forex markets
  • Understanding Forex instruments such as forwards, swaps, options, futures and spot transaction.
  • Understand particpants in forex market and their role
  • Gain knowledge on theories governing foreign exchange
  • Understand use of credit derivatives to hedge foreign exchange risk
  • Understand different types of Forex markets
  • Case Study Approach with real business situations to enhance understanding

WHO SHOULD ATTEND

TThis course is aimed at those with a solid financial background who wish to explore the more advanced aspects of Equity Research, financial modelling and valuation methodologies, including:
  • Foreign Exchange Markets
  • Currency Trading
  • Corporate Treasury
  • Equity Market

Fast Facts

  • Certified by : Moody’s Analytics and EduEdgePro
  • Broad Coverage:
  • Introduction to Forex Market
  • Participants in the foreign exchange market
  • Theories Governing Foreign Exchange
  • Spot Forex Market
  • Forward Forex Market
  • Nature and types of foreign exchange risks
  • Currency derivatives in forex market

  • DETAILED CURRICULUM

    This section introduces forex market to the participant. Types of functions of forex markets are explained. It introduces various types of participants in forex markets and theories governing foreign exchange. A discussion on central bank’s intervention in forex market is covered in this section.

    Introduction to Forex Market
    • What is foreign exchange market
    • Functions and purposes of the FX market
    • Introduction to types of Foreign Exchange Market
    Participants in the foreign exchange market
    • Consumers & Travelers
    • Businesses
    • Investors & speculators
    • Commercial & Investment Banks
    • Government & Central Banks
    Theories governing foreign exchange
    • Interest rate parity
    • Purchasing power parity
    • Nominal v/s real exchange rates, etc.
    Central Banks intervention in the foreign exchange markets

    The objective of this section is to understand forward and spot transactions in the forex market. Concept of Currency quotation, forward premia, difference between spot and forward market is explained with examples.

    Spot Market
    • Market organization
    • Quotation conventions
    • Direct and indirect prices
    • Cross rates
    • Value of a pip
    • Interpreting news and economic statistics
    • Delivery and operations
    Forward Forex Market
    • Outright forward and swap deals
    • Relation between spot & forward markets
    • Quoting forward rates
    • Quoting swap points
    • Forward discounts and premiums
    • Forward forward transactions

    This Section covers the risk in foreign markets focusing on transacting and operating exposure. Specifically you would understand how to hedge forex risk using credit derivatives. Concept of Non deliverable forwards is also explained in this section.

    Nature and types of foreign exchange risks
    • Transaction Exposure
    • Operating Exposure
    Currency derivatives in forex market
    • Currency Futures
    • Current Options
    • Currency Swaps
    • Non Deliverable Forwards
    • Credit and market risk from FX swap transactions