Good for business: get your forex transactions on track

Size: px
Start display at page:

Download "Good for business: get your forex transactions on track"

Transcription

1 Companies Foreign currencies Good for business: get your forex transactions on track

2 Do you want to hedge foreign currency risks or invest in forex? A bank that takes your needs into account and provides you with comprehensive support is good for business.

3 Manage your foreign currencies with a system it ll pay off Your business is dependent on foreign currencies. There are risks in that. But if systematically managed, currencies can also play a part in your business success. As our client, you benefit directly from our worldwide network and our knowhow as one of the world s leading providers of foreign exchange services. We will respond to your needs by devising a solution for you that is ideally tailored to your company s strategic and operational requirements, and that takes your company s value chain into consideration. Whether you want to hedge against price fluctuations, invest in foreign currencies, or trade them we offer you customized and skilled all-round support. Investing You can use forex investments to manage your company s cash reserves efficiently and earn higher returns than available through term deposits. Since there is little correlation between forex investments and equities and bonds, this is also a good way to diversify your portfolio. Trading Some companies have sophisticated currency requirements and need to process high-volume transactions regularly on the market. If you or your company have the necessary expertise and understanding of the risks, as a Direct Access Client we can grant you 24/7 direct access to our trading platform, our currency traders and our online research portal. The following pages give you an overview of how we can help you to get more out of your foreign currencies. Hedging If you don t manage currency risks efficiently, you have no defense against the ups and downs of exchange rates. All it needs is for exchange rates to go the wrong way, and your accounts won t add up any more. With a systematic hedging strategy, you make it as certain as possible that you can keep your budget on track and avoid any losses. 3

4 Protect your profits against currency losses Once your company starts doing business abroad, you have the ups and downs of the currency markets to cope with. We ll help you spot the risks and smooth out the exchange rate fluctuations. Even minor changes in exchange rates can have a major impact on Swiss companies that export or import. For example: Let s say your product costs 9,000 Swiss francs to make. The sales price is 10,000 francs, so the margin is 1,000 francs. You get an order from the USA and invoice your delivery at the current rate of 1 Swiss franc to the dollar. Before the goods are delivered and the invoice paid, the dollar/franc rate falls to 0.9. The 10,000 US dollar return on the sale is now worth only 9,000 francs and instead of a profit on the deal, you re looking at a big fat zero. 4

5 Hedging protects the fruits of your labor Even small changes in exchange rates can affect your company s financial position and make it more difficult to calculate your margins. Systematic hedging gives you the security that comes from planning ahead in much the same way that hedges have always protected the harvests of English farmers. Containing risks Handling currency risks is a (rolling) process with five steps. Again and again, the process shows that what matters is not so much the hedging of individual transactions, but having a definite hedging strategy and sticking to it. 1. Identify risks Currency risks can result a) from cash flow from trading goods in foreign currencies, b) from offers in foreign currencies, and c) from currency reserves on accounts. It is vital to spot these risks at an early stage. 2. Measure risks Known currency risks need to be quantified. It is particularly important to gauge which way the currency markets are going, and over what period of time. 3. Reduce risks Companies can eliminate many exchange rate risks naturally through the intelligent coordination of purchases and sales abroad. 4. Transfer residual risks or hold on to them Where residual risks are concerned, you need to decide to what extent it makes sense to hedge them. A residual risk can still result in currency-related profits. Only when these questions have been clarified should you select your hedging instrument. 5. Measure performance Systematic evaluation of both the effects of the foreign currencies and of the hedging measures will give you valuable information for future decision-making. Further information ubs.com/sme-international ubs.com/tef Brochures on foreign currencies, international trade and trade & export finance Your client advisor UBS SME Service Line Our international transactions specialists

6 Reduced volatility through layering with the UBS 3+ concept Sep. 05 Mar. 06 Sep. 06 Mar. 07 Sep. 07 Mar. 08 Sep. 08 Mar. 09 Sep. 09 Mar. 10 Sep. 10 Spot 6 months forward Hedging 4 layers mix Past performance is not a reliable indicator of future performance. Simulation result for USD/CHF 1-year hedging with three strategies (backtesting over fi ve years: September 2005 September 2010) Get a better grip on risks with 3+ Abrupt price swings hit your company harder than longer-term trends you can prepare for. This is the idea behind our 3+ hedging concept. It s just as suit able for SMEs as it is for large companies. With 3+ you start by defining the band within which you want your hedging strategy to operate. Imminent cash flows are more securely hedged than those further in the future. This way, you stay flexible if the market environment changes. For every time horizon, 3+ estimates a minimum (basic) hedge, a target hedge and a maximum hedge. Conservative instruments are used for the basic hedge, opportunistic for the target hedge, and higher-risk products, promising possibly higher returns, for the maximum hedge. The result is a hedge portfolio graduated by time, with a flexible mix of hedging instruments. Reduce volatility with 3+ Studies show that it doesn t matter how companies manage their foreign currencies: long-term average rates often turn out to be similar. There are, however, considerable differences in fluctuations. Without systematic hedging, companies are far more exposed to the moods of the currency markets and quickly deviate from their budget. Our 3+ hedging concept reduces fluctuations and thus your risks. 6

7 The world s largest trading center Exchange rates have a direct impact on exports and imports. They also impact the labor market, consumer prices and other areas of everyday life. So it s good to know how the currency markets work. Unofficial. There is no organized official exchange for currencies. Instead, international banks such as UBS carry out the transactions between them. Gigantic. Forex is the world s largest market. Every day around four trillion Swiss francs change hands, which equates to eight times the annual GDP of Switzerland. And this figure is increasing: between 2007 and 2010, volumes rose by around 20 percent. Fast as lightning. Sophisticated electronic trading programs mean that all relevant news has an immediate effect on exchange rates. But it s not just speed that s increasing price fluctuations are too. Liquid. The largest market participants, including UBS, trade forex from Monday to Friday around the clock and around the world. Global. Over a third of the forex trading volume is processed via banks in the United Kingdom. The next largest processors are the US, Japan, Singapore and Switzerland. UBS is represented in all these locations. Focused. Currencies are easier to manage than the countless equities on the stock market. The ranking list of the six most important currencies is as follows: US dollar, euro, yen, pound sterling, Australian dollar, Swiss franc. Complex. Exchange rates are influenced by a wide variety of factors, such as economic growth, inflation rates, consumption, interest rates, stock market prices, commodity prices and geopolitical risks. It is no coincidence that forex forecasting is considered to be a highly advanced economic discipline. This information originates from the Bank for International Settlements (BIS) (September 2010). Every three years the BIS conducts a survey of 53 central banks to collect data on the forex market. 7

8 Invest your liquidity where it pays off: on the currency market The currency market provides good ways for you to manage your liquid funds optimally. We re here to help you do this. This first rule of cash management is to ensure that you have the right amount of money in the right currency in the right place and at the right time. So how should you manage excess liquid funds in the short term? These are usually invested in the traditional money market, but there are interesting alternatives, such as the currency market. By investing in currencies, you can also cover short terms of between one week and six months, and thus manage your liquidity efficiently. Depending on your risk profile and investment horizon, this can include direct investments in currency pairs, money market securities, derivatives or structured products. More stability through diversification There is also another important argument for investing in currencies: the returns depend on different external factors to those that affect equities and bonds. Forex investments thus improve portfolio diversification and provide greater stability. Further information ubs.com/cashmanagement Your client advisor UBS SME Service Line

9 Improve your returns with DOCUs tailored to your needs If the money market isn t offering attractive returns, you can use a DOCU (double currency unit) tailored to the exchange rate of a currency pair to achieve higher interest. DOCUs are structured products; the underlying (currency pair), term and exercise date can be chosen freely. This is how a DOCU works: Suppose that you expect the euro to remain stable against the Swiss franc for the next month and you decide DOCU payment diagram Return p.a. 3.0% to invest in a DOCU tailored to the euro-swiss franc exchange rate with a maturity of one month. Upon expiration, you will definitely receive the nominal amount as well as an attractive coupon. Which of the two currencies the payment is made in, depends on how the exchange rate develops. If the euro does not weaken more strongly against the Swiss franc than expected (and the final spot rate is above the exercise price), the payment of the nominal amount and coupon is made in Swiss francs. However, if the euro falls significantly and is equal DOCU to or below the exercise price on the expiration date, the nominal amount and coupon will be paid out in euros converted to the exercise price. If your company also requires euros, this risk is likely to be acceptable. DOCUs and other products can be developed by your client advisor exclusively for you, and customized to your desired term and in line with your risk-return profile. This is made possible by the UBS FX Investor, a tool that is unique in the industry and allows structured products to be developed individually. For investments of over 50,000 Swiss francs, you receive a private placement with a personal securities number within a few minutes. This allows you to react quickly to trends and thus invest your excess liquidity with success. 0.4% 0.0% Exercise price Spot rate Money market EUR/CHF If the EUR/CHF spot rate is greater than the exercise price on expiration, the investment (with interest of 3% p.a.) will be paid back in CHF. If the EUR/CHF spot rate is below the exercise price on expiration, the CHF investment including interest will be converted into and paid out in EUR at the exercise price. 9

10 You can expect more from a strong partner Greater proximity You can count on us for all your forex transactions. Your client advisor knows you and your company. If necessary, he or she can easily request assistance from one of our forex specialists. In Switzerland we operate seven regional forex competence centers, one of which is sure to be located close to you. Greater competence You benefit from the expertise and experience of a leading global foreign exchange provider. Our bank is represented at all key forex trading centers. Other banks also count on our expertise and use our platform for forex transactions. Greater choice We can offer you a solution for almost every need. Our offering includes the entire spectrum of forex services. Where necessary, our specialists develop tailored products for you. We also provide various electronic platforms, which enable you to process your forex transactions independently. More innovation Our offering is always completely up to date. The UBS 3+ hedging concept, for example, is now also established at other providers. Our bank is also a pioneer in the area of electronic trading applications. And using the innovative UBS FX Investor, your client advisor can develop exclusive structured forex products for you in a matter of minutes. More opportunities As Direct Access Clients, companies with significant transaction volumes gain access to our trading platform, forex specialists and research portal around the clock from Monday through Friday. This offer is aimed at clients with complex forex needs, the necessary specialist knowledge, and sufficient familiarity with the associated risks to execute forex transactions independently. More confidence Our experienced forex specialists will be happy to advise you and give you their support. As one of the leading providers on the forex market, we have an insight into the relevant data flows and offer trailblazing electronic systems. This means we not only keep you one step ahead in terms of the information available, we also enable you to make your decisions with more confidence. More information Would you like to find out more? Tell us what you need. We will be happy to show you how to make more out of your forex transactions. You ll see: it s good for business for your company too. 10

11 This publication is intended for information only and is not intended as a recommendation, an offer or a solicitation of an offer to buy or sell any investment or other specific products. It is not to be taken as investment, legal or tax advice and should not be used as a basis for investment decisions. Before making an investment decision, you should obtain relevant professional advice. Please note that UBS reserves the right to alter its services, products or prices at any time without prior notice. Certain products and services are subject to legal restrictions and cannot be offered worldwide on an unrestricted basis. This brochure is not intended for distribution outside Switzerland. Reproduction in whole or part is prohibited without prior permission of UBS. UBS AG P.O. Box 8098 Zurich ubs.com/sme UBS The key symbol and UBS are among the registered and unregistered trademarks of UBS. All rights reserved. Published in English, German, French, and Italian. Printed in April E

Foreign Exchange Investments Discover the World of Currencies. Private Banking USA

Foreign Exchange Investments Discover the World of Currencies. Private Banking USA Foreign Exchange Investments Discover the World of Currencies Credit Suisse Securities (USA) llc Private Banking USA 2 Foreign exchange: There s no ignoring the largest market in the world. Introduction

More information

Portfolio Management Mandate. Your individual solution with an LGT Bandwidth Mandate

Portfolio Management Mandate. Your individual solution with an LGT Bandwidth Mandate Portfolio Management Mandate Your individual solution with an LGT Bandwidth Mandate LGT Portfolio Management Mandate for the professional management of your investments The dynamic nature and increasing

More information

What is Forex Trading?

What is Forex Trading? What is Forex Trading? Foreign exchange, commonly known as Forex or FX, is the exchange of one currency for another at an agreed exchange price on the over-the-counter (OTC) market. Forex is the world

More information

FxPro Education. Introduction to FX markets

FxPro Education. Introduction to FX markets FxPro Education Within any economy, consumers and businesses use currency as a medium of exchange. In the UK, pound sterling is the national currency, while in the United States it is the US dollar. Modern

More information

Getting Started With Forex Trading: A Forex Primer. Member NASD, NYSE, SIPC, and NFA

Getting Started With Forex Trading: A Forex Primer. Member NASD, NYSE, SIPC, and NFA Getting Started With Forex Trading: A Forex Primer Member NASD, NYSE, SIPC, and NFA 1 Important Information and Disclaimer: TradeStation Securities, Inc. seeks to serve institutional and active traders.

More information

Introduction to Foreign Currency Exchange

Introduction to Foreign Currency Exchange Introduction to Foreign Currency Exchange Introduction to Foreign Currency Exchange In the most basic of terms, currency exchange (also known as foreign exchange, forex or FX) is where you swap one currency

More information

Investment Philosophy

Investment Philosophy Investment Philosophy Our unique approach to investment management puts you at the heart of everything we do Wealth and Investment Management Discover a new side to your personality: your investment self

More information

Diversify your wealth internationally

Diversify your wealth internationally ab UBS Swiss Financial Advisers Diversify your wealth internationally UBS Swiss Financial Advisers offers US investors a safe, easy and tax-compliant way to diversify their assets abroad. Contents 3 Why

More information

Guide to Building Your Wealth. 1. What affects the value of money?

Guide to Building Your Wealth. 1. What affects the value of money? Guide to Building Your Wealth 1. What affects the value of money? Money has a tendency to lose its value over time because the price of goods and services usually goes up. This is called inflation. Here

More information

Chapter 4.1. Intermarket Relationships

Chapter 4.1. Intermarket Relationships 1 Chapter 4.1 Intermarket Relationships 0 Contents INTERMARKET RELATIONSHIPS The forex market is the largest global financial market. While no other financial market can compare to the size of the forex

More information

The foreign exchange market is global, and it is conducted over-the-counter (OTC)

The foreign exchange market is global, and it is conducted over-the-counter (OTC) FOREIGN EXCHANGE BASICS TERMS USED IN FOREX TRADING: The foreign exchange market is global, and it is conducted over-the-counter (OTC) through the use of electronic trading platforms, or by telephone through

More information

Foreign Exchange Trading Managers

Foreign Exchange Trading Managers Foreign Exchange Trading Managers Quantum Leap Capital (abbreviated as QLC ) is a Forex Trading Manager which focuses on trading worldwide foreign currencies on behalf of institutions, corporates and individual

More information

The purpose of this ebook is to introduce newcomers to the forex marketplace and CMTRADING. Remember that trading in forex is inherently risky, and

The purpose of this ebook is to introduce newcomers to the forex marketplace and CMTRADING. Remember that trading in forex is inherently risky, and The purpose of this ebook is to introduce newcomers to the forex marketplace and CMTRADING. Remember that trading in forex is inherently risky, and you can lose money as well as make money. Manage your

More information

INTRODUCTION TO FOREIGN EXCHANGE

INTRODUCTION TO FOREIGN EXCHANGE INTRODUCTION TO FOREIGN EXCHANGE Capademy Tutorial Series Option Banque Training Series Vol. 1 The foreign exchange market known as forex for short is the market in which currencies or sovereign money

More information

INTRODUCTION. This program should serve as just one element of your due diligence.

INTRODUCTION. This program should serve as just one element of your due diligence. FOREX ONLINE LEARNING PROGRAM INTRODUCTION Welcome to our Forex Online Learning Program. We ve always believed that one of the best ways to protect investors is to provide them with the materials they

More information

Introduction to Forex Trading

Introduction to Forex Trading Introduction to Forex Trading The Leader in Rule-Based Trading 1 Important Information and Disclaimer: TradeStation Securities, Inc. seeks to serve institutional and active traders. Please be advised that

More information

Currency Derivatives Guide

Currency Derivatives Guide Currency Derivatives Guide What are Futures? In finance, a futures contract (futures) is a standardised contract between two parties to buy or sell a specified asset of standardised quantity and quality

More information

U.S. Dollar Index Contracts

U.S. Dollar Index Contracts U.S. Dollar Index Contracts FAQ June 2015 What is the Dollar Index? The U.S. Dollar Index is a geometrically-averaged calculation of six currencies weighted against the U.S. dollar. The U.S. Dollar Index

More information

SPOT FX Trading Strategies. Copyright Powerup Capital Sdn Bhd

SPOT FX Trading Strategies. Copyright Powerup Capital Sdn Bhd SPOT FX Trading Strategies Currency Codes USD = US Dollar EUR = Euro JPY = Japanese Yen GBP = Great Britian Pound CHF = Swiss Franc CAD = Canadian Dollar AUD = Australian Dollar NZD = New Zealand Dollar

More information

AN INTRODUCTION TO TRADING CURRENCIES

AN INTRODUCTION TO TRADING CURRENCIES The ins and outs of trading currencies AN INTRODUCTION TO TRADING CURRENCIES A FOREX.com educational guide K$ $ kr HK$ $ FOREX.com is a trading name of GAIN Capital - FOREX.com Canada Limited is a member

More information

NEW TO FOREX? FOREIGN EXCHANGE RATE SYSTEMS There are basically two types of exchange rate systems:

NEW TO FOREX? FOREIGN EXCHANGE RATE SYSTEMS There are basically two types of exchange rate systems: NEW TO FOREX? WHAT IS FOREIGN EXCHANGE Foreign Exchange (FX or Forex) is one of the largest and most liquid financial markets in the world. According to the authoritative Triennial Central Bank Survey

More information

a b Time for business Spend less time and effort on your SME s expenses with the UBS Business Card Basic

a b Time for business Spend less time and effort on your SME s expenses with the UBS Business Card Basic a b Time for business Spend less time and effort on your SME s expenses with the UBS Business Card Basic With just one card, you can now enjoy simpler expenses management, greater transparency, and comprehensive

More information

Vanguard research July 2014

Vanguard research July 2014 The Understanding buck stops here: the hedge return : Vanguard The impact money of currency market hedging funds in foreign bonds Vanguard research July 214 Charles Thomas, CFA; Paul M. Bosse, CFA Hedging

More information

Portfolio Management Mandate Domestic Switzerland. Your individual solution with a focus on Switzerland

Portfolio Management Mandate Domestic Switzerland. Your individual solution with a focus on Switzerland Portfolio Management Mandate Domestic Switzerland Your individual solution with a focus on Switzerland LGT Domestic Switzerland Mandate a clear and simple investment solution The world of investment opportunities

More information

Diversify your wealth internationally

Diversify your wealth internationally ab UBS Swiss Financial Advisers Diversify your wealth internationally UBS Swiss Financial Advisers offers US investors a safe, easy and tax-compliant way to diversify their assets abroad. Contents 3 Why

More information

Staying alive: Bond strategies for a normalising world

Staying alive: Bond strategies for a normalising world Staying alive: Bond strategies for a normalising world Dr Peter Westaway Chief Economist, Europe Vanguard Asset Management November 2013 This document is directed at investment professionals and should

More information

Fina4500 Spring 2015 Extra Practice Problems Instructions

Fina4500 Spring 2015 Extra Practice Problems Instructions Extra Practice Problems Instructions: The problems are similar to the ones on your previous problem sets. All interest rates and rates of inflation given in the problems are annualized (i.e., stated as

More information

a b Welcome home Make your dream of owning your own home come true with UBS s versatile financing products

a b Welcome home Make your dream of owning your own home come true with UBS s versatile financing products Welcome home Make your dream of owning your own home come true with UBS s versatile financing products A quick guide to everything you need to know about home financing. Contents The basics 4 Advice 6

More information

Your foreign exchange specialist

Your foreign exchange specialist Citigold Your foreign exchange specialist Your life, your money, your way Local knowledge in foreign exchange solutions Our clients demand the very best international wealth management and that includes

More information

A GUIDE TO ASSET CLASSES. We understand that everyone has different goals when it comes to their savings. When building your investment portfolio it

A GUIDE TO ASSET CLASSES. We understand that everyone has different goals when it comes to their savings. When building your investment portfolio it Investor Portfolio Service (IPS) A GUIDE TO ASSET CLASSES. We understand that everyone has different goals when it comes to their savings. When building your investment portfolio it s important to understand

More information

Introduction to Forex Trading

Introduction to Forex Trading Introduction to Forex Trading The Leader in Rule-Based Trading 1 Important Information and Disclaimer: TradeStation Securities, Inc. seeks to serve institutional and active traders. Please be advised that

More information

Forex Basics brought to you by MatrasPlatform.com

Forex Basics brought to you by MatrasPlatform.com Forex Basics brought to you by MatrasPlatform.com Table of Content What is FOREX... 3 FOREX Basics... 4 Trading Hours... 4 What Is Traded on FOREX?... 4 The Six Majors... 4 Currency Pair Distribution...

More information

INVESTING YOUR SUPER. This document forms part of the NGS Super Member Guide (Product Disclosure Statement) dated 14 August 2015

INVESTING YOUR SUPER. This document forms part of the NGS Super Member Guide (Product Disclosure Statement) dated 14 August 2015 This document forms part of the NGS Super Member Guide (Product Disclosure Statement) dated 14 August 2015 INVESTING YOUR SUPER FACT SHEET 5 14 AUGUST 2015 NGS Super offers you flexibility and choice when

More information

1. HOW DOES FOREIGN EXCHANGE TRADING WORK?

1. HOW DOES FOREIGN EXCHANGE TRADING WORK? XV. Important additional information on forex transactions / risks associated with foreign exchange transactions (also in the context of forward exchange transactions) The following information is given

More information

AN INTRODUCTION TO THE FOREIGN EXCHANGE MARKET

AN INTRODUCTION TO THE FOREIGN EXCHANGE MARKET DUKASCOPY BANK SA AN INTRODUCTION TO THE FOREIGN EXCHANGE MARKET DUKASCOPY BANK EDUCATIONAL GUIDE AN INTRODUCTION TO THE FOREIGN EXCHANGE MARKET www.dukascopy.com CONTENTS INTRODUCTION TO FOREX CURRENCY

More information

T: +44 (0) 207 881 2544 E: support@quantumims.com W: www.dmmup.com/qmfx. Multi-Manager Foreign Exchange Fund

T: +44 (0) 207 881 2544 E: support@quantumims.com W: www.dmmup.com/qmfx. Multi-Manager Foreign Exchange Fund Multi-Manager Foreign Exchange Fund 01 The Ballybunion Quantum Managed FX Fund is a multi-manager UCITS investment vehicle that focuses on trading the worldwide currency markets. We pride ourselves on

More information

How a thoughtful FX strategy can give Fund Managers a competitive edge

How a thoughtful FX strategy can give Fund Managers a competitive edge How a thoughtful FX strategy can give Fund Managers a competitive edge Executive summary Each alternative investment fund takes a different approach to its investment strategy, but the ultimate goals are

More information

What Are the Best Times to Trade for Individual Currency Pairs?

What Are the Best Times to Trade for Individual Currency Pairs? What Are the Best Times to Trade for Individual Currency Pairs? By: Kathy Lien The foreign exchange market operates 24 hours a day and as a result it is impossible for a trader to track every single market

More information

Forex Pair Performance Strength Score

Forex Pair Performance Strength Score Issue 50 Wednesday, September 11, 2013 Forex Pair Performance Strength Score Michael Burke Vice-president of Client Training and Education TSLabs@TradeStation.com Features Studies/Files Included: Focus:

More information

Evolution of Forex the Active Trader s Market

Evolution of Forex the Active Trader s Market Evolution of Forex the Active Trader s Market The practice of trading currencies online has increased threefold from 2002 to 2005, and the growth curve is expected to continue. Forex, an abbreviation for

More information

The Forex Profit System :

The Forex Profit System : The Forex Profit System : How to Earn $50 to $500 a day Forex Trading from the Comfort of Your Own Home! OVERVIEW Dear Friend, Thanks for your interest in my Forex Profit System. The Forex Profit System

More information

Chapter 16: Financial Risk Management

Chapter 16: Financial Risk Management Chapter 16: Financial Risk Management Introduction Overview of Financial Risk Management in Treasury Interest Rate Risk Foreign Exchange (FX) Risk Commodity Price Risk Managing Financial Risk The Benefits

More information

Asset allocation A key component of a successful investment strategy

Asset allocation A key component of a successful investment strategy Asset allocation A key component of a successful investment strategy This guide has been produced for educational purposes only and should not be regarded as a substitute for investment advice. Vanguard

More information

OPTIONS EDUCATION GLOBAL

OPTIONS EDUCATION GLOBAL OPTIONS EDUCATION GLOBAL TABLE OF CONTENTS Introduction What are FX Options? Trading 101 ITM, ATM and OTM Options Trading Strategies Glossary Contact Information 3 5 6 8 9 10 16 HIGH RISK WARNING: Before

More information

T: +44 (0) 207 881 2544 E: support@quantumwms.co.uk W: www.dmmup.com/qmfx. Multi-Manager Foreign Exchange Fund

T: +44 (0) 207 881 2544 E: support@quantumwms.co.uk W: www.dmmup.com/qmfx. Multi-Manager Foreign Exchange Fund Multi-Manager Foreign Exchange Fund 01 The Quantum Managed FX Fund is a multi-manager UCITS investment vehicle that focuses on trading the worldwide currency markets. At Quantum, we pride ourselves on

More information

The foreign exchange market operates 24 hours a day and as a result it

The foreign exchange market operates 24 hours a day and as a result it CHAPTER 5 What Are the Best Times to Trade for Individual Currency Pairs? The foreign exchange market operates 24 hours a day and as a result it is impossible for a trader to track every single market

More information

MLC MasterKey Unit Trust Product Disclosure Statement (PDS)

MLC MasterKey Unit Trust Product Disclosure Statement (PDS) MLC MasterKey Unit Trust Product Disclosure Statement (PDS) Preparation date 1 July 2014 Issued by MLC Investments Limited (MLC) ABN 30 002 641 661 AFSL 230705 This information is general and doesn t take

More information

Chapter 1.1. The Forex Market

Chapter 1.1. The Forex Market Chapter 1.1 The Forex Market 0 THE FOREX MARKET The Forex market is the largest financial market in the world. Nearly $3.2 trillion worth of foreign currencies trade back and forth across the Forex market

More information

Crafting a Forward Looking Investment Portfolio

Crafting a Forward Looking Investment Portfolio BOURSE SECURITIES LIMITED February 15th, 2016 Crafting a Forward Looking Investment Portfolio This week, we at Bourse evaluate the investment considerations and opportunities having looked previously at

More information

Trading forex is buying one currency while at the same time selling a different currency.

Trading forex is buying one currency while at the same time selling a different currency. F O R E I G N E X C H A N G E B A S I C S T E R M S U S E D I N F O R E X T R A D I N G The foreign exchange market is global, and it is conducted over-the-counter (OTC) through the use of electronic trading

More information

QUESTIONS CHAPTER 20 FOREIGN EXCHANGE MARKETS

QUESTIONS CHAPTER 20 FOREIGN EXCHANGE MARKETS QUESTIONS CHAPTER 20 FOREIGN EXCHANGE MARKETS Question 20.1 Suppose you want to buy a car. You either want to buy a Chevrolet for US$ 23,000, a Volkswagen for 15,900, a Honda for 2.2 million or a Hyundai

More information

The foreign exchange and derivatives markets in Hong Kong

The foreign exchange and derivatives markets in Hong Kong The foreign exchange and derivatives markets in Hong Kong by the Banking Supervision Department The results of the latest triennial global survey of turnover in the markets for foreign exchange (FX) and

More information

General Risk Disclosure

General Risk Disclosure General Risk Disclosure Colmex Pro Ltd (hereinafter called the Company ) is an Investment Firm regulated by the Cyprus Securities and Exchange Commission (license number 123/10). This notice is provided

More information

Introduction to Foreign Exchange. Andrew Wilkinson

Introduction to Foreign Exchange. Andrew Wilkinson Introduction to Foreign Exchange Andrew Wilkinson Risk Disclosure Options and Futures are not suitable for all investors. The amount you may lose may be greater than your initial investment. Before trading

More information

2 Stock Price. Figure S1.1 Profit from long position in Problem 1.13

2 Stock Price. Figure S1.1 Profit from long position in Problem 1.13 Problem 1.11. A cattle farmer expects to have 12, pounds of live cattle to sell in three months. The livecattle futures contract on the Chicago Mercantile Exchange is for the delivery of 4, pounds of cattle.

More information

BUSM 411: Derivatives and Fixed Income

BUSM 411: Derivatives and Fixed Income BUSM 411: Derivatives and Fixed Income 2. Forwards, Options, and Hedging This lecture covers the basic derivatives contracts: forwards (and futures), and call and put options. These basic contracts are

More information

Friends Life Online Stakeholder Pension Fund guide

Friends Life Online Stakeholder Pension Fund guide Friends Life Online Stakeholder Pension Fund guide This guide describes the funds available for investment under our Friends Life Online Stakeholder Pension and sets out their aims. Which funds can I choose

More information

LET S GET TO KNOW FOREX

LET S GET TO KNOW FOREX LET S GET TO KNOW FOREX AN INTRODUCTION TO TRADING CURRENCIES A FOREX.COM EDUCATIONAL GUIDE LET S GET TO KNOW FOREX AN INTRODUCTION TO TRADING CURRENCIES 4 INTRODUCTION: THE BULLS & THE BEARS 6 WHAT IS

More information

CAF MANAGED PORTFOLIO SERVICE. Profile selector for charities and not-for-profit organisations

CAF MANAGED PORTFOLIO SERVICE. Profile selector for charities and not-for-profit organisations CAF MANAGED PORTFOLIO SERVICE Profile selector for charities and not-for-profit organisations CAF MANAGED PORTFOLIO SERVICE Profile selector The CAF Managed Portfolio Service is developed and operated

More information

Your Guide to Foreign Exchange. Strategies for managing risk and making payments worldwide.

Your Guide to Foreign Exchange. Strategies for managing risk and making payments worldwide. Your Guide to Foreign Exchange Strategies for managing risk and making payments worldwide. Contents Capitalizing on global opportunities... 1 Bringing the benefits of FX to your business... 2 Integrating

More information

FOREX Markets & Trading Currencies

FOREX Markets & Trading Currencies FOREX Markets & Trading Currencies Updates Tonight: FOREX & Demonstra1on of thinkorswim pla9orm Next Week: Stock & Op*ons Trading 101 on March 3 rd Execu1ve Board Applica1ons out now Apply for COO & CMO

More information

Learn to Trade FOREX II

Learn to Trade FOREX II Lesson 1 The Forex Market The Foreign Exchange market, also referred to as the "FX market" or "Spot FX", is the largest financial market in the world with daily average turnover of US$1.9 trillion. Unlike

More information

FOREX FOR BEGINNERS. www.mundomarkets.com

FOREX FOR BEGINNERS. www.mundomarkets.com FOREX FOR BEGINNERS CONTENT 01. 02. 03. 04. What is forex market and how it works? Forex market (page 2) Liquidity providers (page 3) Why acquiring knowledge is important in the forex market? Experience

More information

Private Investment Management. A disciplined investment approach

Private Investment Management. A disciplined investment approach Private Investment Management A disciplined investment approach 03 A disciplined investment approach You have been able to accumulate a substantial amount of capital. However, the challenge is to preserve

More information

Mechanics of Foreign Exchange - money movement around the world and how different currencies will affect your profit

Mechanics of Foreign Exchange - money movement around the world and how different currencies will affect your profit Dear Business Leader, Welcome to the Business Insight Seminars an exclusive, informational series to help you gain a powerful edge in today s highly competitive business environment. Our first topic in

More information

Assignment 10 (Chapter 11)

Assignment 10 (Chapter 11) Assignment 10 (Chapter 11) 1. Which of the following tends to cause the U.S. dollar to appreciate in value? a) An increase in U.S. prices above foreign prices b) Rapid economic growth in foreign countries

More information

Chapter 1.2. Currencies Come in Pairs

Chapter 1.2. Currencies Come in Pairs Chapter 1.2 Currencies Come in Pairs 0 GETTING STARTED You know the advantages of trading forex, and you are excited to start trading. Now you need to learn what this market is all about. How does it work?

More information

Benefit from the Vanguard difference

Benefit from the Vanguard difference Benefit from the Vanguard difference Contents 2 About Vanguard 3 An enduring investment philosophy 4 A different way to invest 6 An indexing leader 7 A trusted partner for advisors in Canada 8 Contact

More information

Foreign Exchange Market INTERNATIONAL FINANCE. Function and Structure of FX Market. Market Characteristics. Market Attributes. Trading in Markets

Foreign Exchange Market INTERNATIONAL FINANCE. Function and Structure of FX Market. Market Characteristics. Market Attributes. Trading in Markets Foreign Exchange Market INTERNATIONAL FINANCE Chapter 5 Encompasses: Conversion of purchasing power across currencies Bank deposits of foreign currency Credit denominated in foreign currency Foreign trade

More information

Score. Stifel CONQUEST Portfolios. Research-Driven Portfolios PORTFOLIO STRATEGY EXCHANGE TRADED FUNDS. Ease of Diversification

Score. Stifel CONQUEST Portfolios. Research-Driven Portfolios PORTFOLIO STRATEGY EXCHANGE TRADED FUNDS. Ease of Diversification Stifel CONQUEST Portfolios PORTFOLIO STRATEGY The Washington Crossing Advisors Stifel CONQUEST Portfolios seek to add value by actively allocating assets among U.S. equities, bonds, commodities, and foreign

More information

KEY INFORMATION DOCUMENT

KEY INFORMATION DOCUMENT KEY INFORMATION DOCUMENT PSG WEALTH CURRENCY FUTURES TRADING ACCOUNT TRADING ACCOUNT PAGE 0 This document is a summary of key information about the PSG Wealth currency futures trading account. It will

More information

Hedge Hog Trade Rules

Hedge Hog Trade Rules Hedge Hog Trade Rules Using Inverse correlation to decrease market exposure By: www.forextradersdaily.com Incomplete Draft Copy If you are reading this please note that the system is still in testing and

More information

Global Investing: The Importance of Currency Returns and Currency Hedging

Global Investing: The Importance of Currency Returns and Currency Hedging Global Investing: The Importance of Currency Returns and Currency Hedging There is a continuing trend for investors to reduce their home bias in equity allocation and increase the allocation to international

More information

FX Options NASDAQ OMX

FX Options NASDAQ OMX FX Options OPTIONS DISCLOSURE For the sake of simplicity, the examples that follow do not take into consideration commissions and other transaction fees, tax considerations, or margin requirements, which

More information

Be selective. Swiss Invest. A Swiss portfolio that exceeds expectations.

Be selective. Swiss Invest. A Swiss portfolio that exceeds expectations. Be selective. Swiss Invest A Swiss portfolio that exceeds expectations. Welcome to Switzerland Switzerland is a safe haven for investments, giving you the stability and security you expect from an attractive,

More information

About Hedge Funds. What is a Hedge Fund?

About Hedge Funds. What is a Hedge Fund? About Hedge Funds What is a Hedge Fund? A hedge fund is a fund that can take both long and short positions, use arbitrage, buy and sell undervalued securities, trade options or bonds, and invest in almost

More information

An introduction to the foreign exchange market Moorad Choudhry September 2002

An introduction to the foreign exchange market Moorad Choudhry September 2002 An introduction to the foreign exchange market Moorad Choudhry September 2002 The market in foreign exchange is an excellent example of a liquid, transparent and immediate global financial market. Rates

More information

Turnover of the foreign exchange and derivatives market in Hong Kong

Turnover of the foreign exchange and derivatives market in Hong Kong Turnover of the foreign exchange and derivatives market in Hong Kong by the Banking Policy Department Hong Kong advanced one place to rank sixth in the global foreign exchange market and seventh when taking

More information

Corporate Risk Management Advisory Services FX and interest rate solutions for clients

Corporate Risk Management Advisory Services FX and interest rate solutions for clients Corporate Risk Management Advisory Services FX and interest rate solutions for clients Risk Management: The UBS Warburg approach UBS Warburg has built an outstanding reputation in the management of foreign

More information

Introductory remarks by Jean-Pierre Danthine

Introductory remarks by Jean-Pierre Danthine abcdefg News conference Berne, 15 December 2011 Introductory remarks by Jean-Pierre Danthine I would like to address three main issues today. These are the acute market volatility experienced this summer,

More information

1 JULY 2015. Investment Guide INDUSTRY, CORPORATE AND PERSONAL DIVISIONS

1 JULY 2015. Investment Guide INDUSTRY, CORPORATE AND PERSONAL DIVISIONS 1 JULY 2015 Investment Guide INDUSTRY, CORPORATE AND PERSONAL DIVISIONS Your investment choice TWUSUPER was established in 1984 as the Industry SuperFund for people in transport and logistics. By understanding

More information

FX Domain Kick-start for Testers

FX Domain Kick-start for Testers FX Domain Kick-start for Testers A brief introduction to key FX elements. Discussion Document by Mark Crowther, Principle Test Architect Tien Hua, Senior Test Analyst Table of Contents Introduction...

More information

MICHAEL HODGES AND BRETT COOPER

MICHAEL HODGES AND BRETT COOPER WHY COPY TRADE FOREX MICHAEL HODGES AND BRETT COOPER WHAT IS FOREX COPY TRADING Forex copy trading is a relatively new way of trading currency. It takes a lot of the risk and hassle out of trading and

More information

EUR/USD Tips and Trading Strategies. Kathy Lien www.bkforex.com

EUR/USD Tips and Trading Strategies. Kathy Lien www.bkforex.com EUR/USD Tips and Trading Strategies Kathy Lien www.bkforex.com Past performance is not indicative of future results. Trading forex carries a high level of risk, and may not be suitable for all investors.

More information

SAMPLE MID-TERM QUESTIONS

SAMPLE MID-TERM QUESTIONS SAMPLE MID-TERM QUESTIONS William L. Silber HOW TO PREPARE FOR THE MID- TERM: 1. Study in a group 2. Review the concept questions in the Before and After book 3. When you review the questions listed below,

More information

TRADING SECRET NO. 3 How to combine two simple tools to capture big trending moves, especially in currencies

TRADING SECRET NO. 3 How to combine two simple tools to capture big trending moves, especially in currencies TRADING SECRET NO. 3 How to combine two simple tools to capture big trending moves, especially in currencies 25 Currencies have a reputation for being markets that trend well. And, every business day over

More information

Session #3 Finding Relative Strength/Weakness

Session #3 Finding Relative Strength/Weakness Session #3 Finding Relative Strength/Weakness Legal Disclosure Trading Currencies may involve high risk and, potentially, the loss of any funds invested. Investment information provided may not be appropriate

More information

The European Central Bank s Minimum Bid Rate and Its Effect on Major Currency Pairs

The European Central Bank s Minimum Bid Rate and Its Effect on Major Currency Pairs The European Central Bank s Minimum Bid Rate and Its Effect on Major Currency Pairs Ikhlaas Gurrib Abstract The paper looks at the effects of Minimum Bid Rate on three major currency pairs namely the Australian

More information

Portfolio Management Consultants Perfecting the Portfolio

Portfolio Management Consultants Perfecting the Portfolio Portfolio Management Consultants Perfecting the Portfolio Envestnet PMC is the ultimate advisor to the advisor. Our goal is to help advisors strengthen relationships with their clients and improve outcomes

More information

Best Times to Trade Forex

Best Times to Trade Forex Best Times to Trade Forex The Forex Market The forex market is the largest financial market in the world, trading around $3.1 trillion each day. (Every three years, the Bank of International Settlements

More information

rtfx asset ManageMent ServiceS INFORMATION BROCHURE

rtfx asset ManageMent ServiceS INFORMATION BROCHURE rtfx asset ManageMent ServiceS INFORMATION BROCHURE Our History RTFX Ltd is a pioneer in the online Foreign Exchange market with a history dating back to 1995 when the first of the group of strategic partnering

More information

BEST TIMES TO TRADE THE FOREX MARKET

BEST TIMES TO TRADE THE FOREX MARKET BEST TIMES TO TRADE THE FOREX MARKET The forex market is the largest financial market in the world, trading around $3.1 trillion each day. (Every three years, the Bank of International Settlements (BIS)

More information

COMMUNITY FOUNDATION OF GREATER MEMPHIS, INC. INVESTMENT GUIDELINES FOR MONEY MARKET POOL

COMMUNITY FOUNDATION OF GREATER MEMPHIS, INC. INVESTMENT GUIDELINES FOR MONEY MARKET POOL INVESTMENT GUIDELINES FOR MONEY MARKET POOL discretionary Money Market Pool is expected to pursue their stated investment strategy and follow the investment guidelines and objectives set forth herein.

More information

Reading: Chapter 19. 7. Swaps

Reading: Chapter 19. 7. Swaps Reading: Chapter 19 Chap. 19. Commodities and Financial Futures 1. The mechanics of investing in futures 2. Leverage 3. Hedging 4. The selection of commodity futures contracts 5. The pricing of futures

More information

Maverick FX Trading. Forex 101 Session #4 Preparation for Demo Trading

Maverick FX Trading. Forex 101 Session #4 Preparation for Demo Trading Maverick FX Trading Forex 101 Session #4 Preparation for Demo Trading Session #3 Review Time frames Relative Strength/Weakness Determine Strong/Weak News Events Correlations Session #4 Schedule Demo Account

More information

Managing Risk/Reward in Fixed Income

Managing Risk/Reward in Fixed Income INSIGHTS Managing Risk/Reward in Fixed Income Using Global Currency-Hedged Indices as Benchmarks In the pursuit of alpha, is it better to use a global hedged or unhedged index as a benchmark for measuring

More information

SaxoTraderGO. Saxo Academy. Placing Forex Trade Orders. academy.tradingfloor.com

SaxoTraderGO. Saxo Academy. Placing Forex Trade Orders. academy.tradingfloor.com Saxo Academy SaxoTraderGO Placing Forex Trade Orders Please note, these notes are transcripts of the videos on Saxo Academy and are designed to accompany the SaxoTraderGO video series. Placing FX Trade

More information

CHAPTER 9 MANAGEMENT OF ECONOMIC EXPOSURE SUGGESTED ANSWERS AND SOLUTIONS TO END-OF-CHAPTER QUESTIONS AND PROBLEMS

CHAPTER 9 MANAGEMENT OF ECONOMIC EXPOSURE SUGGESTED ANSWERS AND SOLUTIONS TO END-OF-CHAPTER QUESTIONS AND PROBLEMS CHAPTER 9 MANAGEMENT OF ECONOMIC EXPOSURE SUGGESTED ANSWERS AND SOLUTIONS TO END-OF-CHAPTER QUESTIONS AND PROBLEMS QUESTIONS 1. How would you define economic exposure to exchange risk? Answer: Economic

More information

UK Copper. Fact sheet. Introduction. Copper Trading

UK Copper. Fact sheet. Introduction. Copper Trading UK Copper Fact sheet Introduction Copper Trading Copper is the world s third most widely used metal, after iron and aluminium, and is primarily used in highly cyclical industries such as construction and

More information

RISK EQUITIES BONDS PROPERTY INCOME SPIN-FREE GUIDE TO BONDS

RISK EQUITIES BONDS PROPERTY INCOME SPIN-FREE GUIDE TO BONDS INVESTING RISK EQUITIES BONDS PROPERTY INCOME SPIN-FREE GUIDE TO BONDS Contents Explaining the world of bonds 3 So what are bonds? 3 Understanding the risks 4 Three words you need to know 4 Understanding

More information