Exchange rate fluctuations can have significant negative effects, making it essential to gain a thorough understanding of foreign exchange markets and financial instruments to predict rate changes and, most importantly, manage them. This Foreign Exchange Market and Derivatives training course provides participants with the knowledge and expertise to effectively navigate these markets.
Derivatives are crucial tools for hedging and risk management. But what exactly are derivatives, and how can they be used to mitigate risks from fluctuating exchange rates, commodity prices, interest rates, and even unpredictable weather patterns?
This Energy training course offers comprehensive answers by exploring the latest techniques and tools, covering key financial instruments like forwards, options, futures, and swaps, as well as more complex derivatives like swaptions. Participants will not only gain a deep understanding but will also acquire practical skills to manage their organization's risks.
The Foreign Exchange Market and Derivatives training course will cover:
- Development of skills through interactive sessions and analysis of real-life case studies tailored to your organization.
- An overview of the Foreign Exchange Market and its instruments.
- The latest methods for managing exchange rate risk.
- The role of derivatives in risk management.
- Key discussions on practical management and organizational benefits.
By the end of this Foreign Exchange Market and Derivatives training course, participants will be able to:
- Describe the fundamentals of Foreign Exchange Markets and the factors influencing exchange rates.
- Effectively manage exchange rate risks.
- Utilize derivatives to mitigate risks related to exchange rates, commodity prices, interest rates, and more.
- Engage in trading on derivative markets.
- Protect against the risks associated with trading derivatives.
This Foreign Exchange Market and Derivatives training course is suitable to a wide range of professionals but will greatly benefit:
- Managers and supervisors dealing with Foreign Exchange
- Treasury Management Derivative traders
- Risk Management
- Foreign Exchange Dealers
- Those with a need/desire to understand new Financial Instruments & Techniques
This Foreign Exchange Market and Derivatives training course is suitable to a wide range of professionals but will greatly benefit:
- Managers and supervisors dealing with Foreign Exchange
- Treasury Management Derivative traders
- Risk Management
- Foreign Exchange Dealers
- Those with a need/desire to understand new Financial Instruments & Techniques
Day One: Foreign Exchange Markets
- Foreign Exchange Rate Regimes/Systems
- The Nature of the Foreign Exchange Market
- Market Size & Types of Transactions
- (FOREX) Exchange Rate Quotations
- Calculating Forward Rates & their Cost/Benefit
- The Determinants of Exchange Rates: Purchasing Power Parity Theory & Interest Rate Parity Theory
Day Two: Managing Exchange Rate Risk
- Defining and Identifying Exchange Rate Risk
- Transaction
- Translation
- Economic
- Measuring and Evaluating the Risk
- Determining the Risk Management Strategy – assessing impact and probability
- Internal Hedging Techniques
- External Hedging Techniques & Strategies
- Forward Exchange Contracts, - Fixed and Option
Day Three: Derivative Markets & Products
- What are Derivatives & Major Derivative Markets?
- Hedging, Speculation, Arbitrage and Securitisation - the purpose, benefits, and risks
- Forwards V Options – Calls & Puts; European & American
- Options: Pricing (The Black & Scholes Model) Delta, Gamma, Theta, Vega & Rho and their implications
- Futures – Market Correlation; Margin Payments, Ticks etc.
- Currency Swaps
Day four: Using Derivatives to Manage Risk
- Risk or a Risk Management Tool?
- Controlling Derivative Trading
- Interest Rate & Commodity Derivatives
- Other Derivatives: Credit Default Obligations & Credit Default Swaps & Exotic Derivatives, Swaptions etc
- The Impact on Financial Statements
- CASE STUDY: Using Derivatives (Forwards, Options, Futures & Swaps) to Manage Risk
Day five: Trading Techniques and Strategies in Foreign Exchange Markets
- The Six Forces of Forex
- Fundamental Analysis and Leading Market Indicators
- Technical Analysis and Patterns and Forecast Methods
- The 20 Issues you must consider dealing with Forex Markets
- Tips for Successful Trading in Forex Markets
- Simulation: a Trading day in Forex Platform