This 2-day course offers a detailed analysis of the Foreign Exchange market place, the products that trade within it, and how it is used by traders, investors and companies.
On day one, we start with the basics of FX – how are the rates quoted, what drives movements in the price, what are the products? We then look at trading and investing in FX. From a trading perspective we examine what happens within banks and the role of the market maker, looking at how banks operate profitably in the FX market. Next, we look at the investment aspect of FX. How do investors form a view on a currency pair? How do they execute the trades and manage their exposure through limit orders? We look at how including options in your investment approach allow the formation of a more bespoke view on the market. We also look at the downsides of investing with options, including exotics.
On day two we move our focus to the company. We analyse how companies encounter FX risk through transaction and translation effects, using real company accounts as our evidence. We look at the variety of hedging approaches available and assess the pros and cons of each. We examine the hedging decision making process – how do real companies make these decisions? And we also look at the process of interacting with banks – what’s the process, what are the rules, and what do they get out of it?
The course finishes with a series of case studies examining both the investment and hedging aspects covered during the two days.
Who should attend?
- Bank traders, salespeople, structurers
- Bank market risk managers, middle office and operations professionals
- Investors – institutional investors, fund managers, private traders
- Company treasury managers and staff, accountants, risk managers
The course consists of classroom-based training which combines formal teaching of concepts and technical content, with individual and group exercises to reinforce learning points.