Fundamentals of Foreign Exchange Trading, Hedging and Risk Management

• How to deal with FX in the ‘real world’
Explanation of how to deal effectively and with profitability in a ‘real world’ environment with political and economic news having a bearing on the FX market.
• How to do trade, hedge and manage risk in Foreign Exchange
• Learn how to trade, hedge and manage downside risk through the use of a systematic process enabled by the habits of mind.

1) THE FOREIGN EXCHANGE MARKET
• Mechanics of FX quotation
• Direct and Indirect quote
• Bid and offer rate
• Value dates
• Cross rates
2) THE FORWARD MARKET
• Mechanics of calculating forward rates
• What are interest rate differentials
• Bid and offer forward points
• Are forward points at a discount or premium
• Calculation of cross forward rates
• What is short-date foreign exchange

3) EFFECT OF ECONOMICS AND POLITICS
• factors affecting FX rates
• Long term factors
• Short term factors
• Interpretation of U.S and other major economies economic indicators

At the end of the course, trainees are able to:
Acquire a generic understanding of the Foreign Exchange Market
Acquire the understanding of the Foreign Exchange industry knowledge including economic and political climate impacting the industry.
Acquire the knowledge of a systematic approach in trading, hedging and managing downside risk in foreign exchange.

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