Exchange Rate volatility can be very damaging, and it is therefore to develop a detailed knowledge of Foreign Exchange Markets, and Instruments in order to understand how rates may change and more importantly how to manage them. This Foreign Exchange Market and Derivatives training course provides the knowledge and skills to do that.
Derivatives play an important role in hedging/managing risk. But what exactly are Derivatives and how can they be used to reduce or even eliminate risks arising from volatile, exchange rates, commodity prices, interest rates and even weather conditions.
This Foreign Exchange Market and Derivatives Coventry Academy training course provides the answers by examining the latest tools and techniques, giving delegates a detailed understanding of Forwards, Options, Futures and Swaps as well as more exotic derivatives such as Swaptions. Delegates will not only leave with extensive knowledge but also the skills to manage the risks facing your organisation.
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
What are the goals?
By the end of this Coventry Academy 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
Who is this training course for?
This Coventry Academy 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
How will this training course be presented?
This Coventry Academy 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
Course Outline
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.