EXCHANGE MARKET AND DERIVATIVES

TRAINING OVERVIEW

TRAINING TOPICS

• 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, delegates 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

TRAINING IS TAILORED TO

• 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

TRAINING METHODOLOGY

DixonTech's training course incorporates diverse adult learning techniques to facilitate optimal understanding, comprehension, and retention of presented information. The methodology comprises:

• Interactive Case Studies drawn from real-world scenarios and delegates' companies.
• In-depth Discussion and Evaluation of the latest international tools and techniques
• Role-playing exercises for practical application
• Pre- and Post-Course Assessments for continuous improvement

Participants will receive a comprehensive set of handouts and examples in both printed and electronic formats to enhance their learning experience.

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, Swap 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