Foreign Exchange Market
and Derivatives

Understanding Foreign Exchange Markets and Instruments is crucial due to the potential damage caused by Exchange Rate volatility. This Foreign Exchange Market and Derivatives training course equips participants with the necessary knowledge and skills to comprehend how exchange rates may fluctuate and, more importantly, how to effectively manage these fluctuations.

Derivatives play a pivotal role in hedging and managing risks associated with volatile factors such as exchange rates, commodity prices, interest rates, and even weather conditions. This training course delves into the fundamentals of Derivatives, explaining their role and demonstrating how they can mitigate or eliminate risks.

Participants will gain insights into the latest tools and techniques, developing a comprehensive understanding of Forwards, Options, Futures, Swaps, and more complex derivatives like Swaptions. By the end of the course, delegates will not only possess extensive knowledge but also acquire practical skills to proactively manage risks within their organizations.

This training course will feature:

• Skills development via interactive sessions and evaluation of a real-life case studies relevant to your organisation
• The Foreign Exchange Market & Instruments
• The latest tools and techniques to Manage Exchange Rate Risk
• The Use of Derivatives to Manage Risk
• Key discussion of the practical management and organisational benefits

By the end of this training course, participants will be able to: 

• Outline the nature of Foreign Exchange Markets and the Determinants of Exchange Rates
• Manage Exchange Rate Risk effectively
• Use Derivatives to Manage Risk – Exchange Rates, Commodity Prices, Interest Rates etc
• Trade on Derivative Markets
• Guard against the Risks of Trading in Derivatives

This 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 training course will utilise a variety of proven adult learning techniques to ensure maximum understanding, comprehension and retention of the information presented. This includes:

• Interactive Case Studies from the real world/delegates’ company
• Discussion and Evaluation of the latest international tools & techniques
• Role play
• Pre & Post Course Assessments

Participants will also be given a detailed set of handouts and examples in both printed and electronic format.

• 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

• 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

• 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

• 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

• 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

Anderson Certificate of Completion will be provided to delegates who attend and complete the course