In partnership with:
This course, in partnership with UK Finance, is designed to give real insight into the modern Foreign Exchange Markets. We look at the electronic trading, and how it operates. We explain what Algorithmic Trading is and how it affects the market. The course drills down into the basic pricing of FX instruments and into the more complex products, such as NDFs and options. We also look at FX valuation and risk.
- Learn how modern FX markets operate. Who are the Market Makers, what are the volumes, major currencies and what role does “Algorythmic Trading” play?
- Understand how market liquidity operates and how the FX Market is traded
- Learn about the role of the Electronic Broker and the OTC market
- Understand how cross currencies are priced and traded
- Learn through simple exercise how FX swaps are priced and how the forward market operates
- Appreciate how the NDF market originated and its role in the market today
- Learn about popular FX products used in the market
- Understand how Options are used to manage risk
- The size and scope of modern FX Markets. We consider the size, major currencies and players
- The Spot Market – basic pricing. “Crossing the spread” (bid and offer)
- Pricing Cross rates and Currency Arbitrage.
- Positions and P/L Management
- What is VAR and how is it used to limit Market Risk
- Pricing FX Swaps. We price a swap from money market rates
- Discount, Premium and swap points
- Pricing an Outright Forward for a corporate and why they use them
- NDFs – The rise of the Non-Deliverable Forward. We discuss its roots and why this market is growing.
- Participating Forwards and other popular FX Products
- Using FX Options to manage risk. We look at basic calls/ puts, plus barrier options
Who should attend
Anyone interested in how the Fixed Income works, both in theory and in practices. New starters, Audit, Compliance, Risk, Operations etc would find this course very useful.