Geometric Progression Investment & Financial Management. Understanding Forex (2 days)

Transcription

1 Overview Understanding Forex (2 days) South Africa is now firmly entrenched in the global economy. Any company involved in any aspect of exporting or importing needs to understand the impact of Foreign Exchange on their business. This course will take you through everything you need to know about the FOREX market. We discuss all of the details of FOREX from: Going Global. Importing and Exporting. INCO terms. International Trade agreements. Looking at how the FOREX market developed; The Gold standard; Fixed Exchange rates and pegs versus floating exchange rates; Balance of payments and balance of trade; The implications of a current account deficit for South Africa and USA; Exchange controls; Currency quoting conventions and jargon such as base currency, terms currency, direct quotes, indirect quotes, pips etc; The crosses and simple ways of calculating the cross rate from two other currencies; Some FOREX settlement jargon and rolls; Trading in FOREX personally and professionally and all of the trading jargon e.g. long, short, bid offer, choice, hedge etc. FOREX forwards and forward exchange contracts. Understanding FEC s. Interest rate parity. Determining the forward price. Forex Futures Forex options. Currency Swaps Fx Swaps. Please refer to the agenda for more info. is accredited as a provider of education and training by BANKSETA. Accreditation number: is also an authorised financial (License Number:43224). We are a B-BBEE level four contributor. 1

2 Level: From Introductory to Intermediate Prerequisites Having a basic understanding of the financial markets is recommended however you can get by with just limited knowledge. Refer to the Understanding the Financial Markets course for more information. Delegates who register for the course will receive PDF notes to recap the key introductory concepts. Duration: 2 Days. (8h30-16h30) Suitable for: All Treasury staff from Back Office through to Front Office including: Business analysts; Professionals; Investors; Traders;; Regulators & Compliance Staff Risk Managers; Private Banking; Fund Managers & Trustees; Graduates and interns.; Delegates registered to write CFA exam, FRM exam, PRM exam or RPE. Anyone seeking a greater insight into the FOREX Market. A certificate is available on request 2

3 Agenda 1. Understanding Exporting & Importing Researching the foreign market and appointing agents. Export \ import documentation. Pricing for the foreign market. All the Incoterms such as FOB, exworks, DDU etc. Packing and logistics. Import and export parity. International trade Finance. (Discussion and video on importing and exporting) 2. A brief Historical Journey of Money and FOREX The story of money from barter to Coinage. Paper Money & E Money. The Gold Standard. Deposit Banking & Goldsmiths. Bretton Woods. The Floating Exchange rate. The formation of the Euro. Exchange rate pegs and how they work. The IMF Special Drawing Rights. Protectionism vs free trade. Balance of payments and balance of trade. The Capital Account. Implications of a current account deficit on South Africa. A brief overview of SA Exchange Control. (In order to understand were we are going, it helps to understand where we have come from.) This section includes Video. 3. The Spot Forex Market How it works and jargon of the market. Base and terms currency. Indirect \ direct. Pips. The quote style etc. The crosses & FOREX calculations. A look at major, minor, exotic and emerging market currencies. Rolls & Settlement. 3

4 4. Trading Forex Agent & Principal. Jargon such as Yours, Mine, Double, Spread, choice, depth etc. Arbitrage, hedging, speculating, long \ short. Delta Hedging. Hand signals. (This is a fun section as you will learn to trade Forex and the jargon of trading. This section is vital for understanding how traders talk and understanding quotes.) 5. Forex Forwards and Forward Exchange Contracts Understanding Forwards and forward cover. The cost of carry. The interest rate parity. Calculating the outright forward rate. Premium and discount. Forward exchange contracts. Characteristics of FEC s. Hedging with Forwards. Examples of forward cover Disasters This section includes video and animation. Delegates with also look at various forward cover scenarios. 6. An introduction to Forex Futures & Options Understanding futures and their applications. Initial Margin, variation margin & the clearinghouse. FOREX Futures contract specifications including contracts from international exchanges to the Yield X contracts. Understanding options. Currency options and their applications. Options on Futures. An introduction to Forex Option valuation. In this section, delegates will learn how to gamble in order to understand the framework of how options are priced. We will introduce option valuation without having to go into the detailed maths. 7. Currency SWAPS and FX SWAPS Understanding currency swaps. Applications of Currency swaps and quoting conventions. FX Swaps and their applications. Quoting conventions. Video and multimedia is used throughout the course to reinforce concepts. 4

5 Tutor: Mark Raffaelli CFA,FRM Mark graduated with a Bachelor of Commerce from the University of Natal, South Africa in He is a CFA Charterholder and a member of the CFA Institute. He is also a fellow member of the Global Association of Risk Professionals (GARP) and has the Financial Risk Manager (FRM) qualification. Mark s extensive experience ranges from trading in Spot & Derivative Products and Consulting to software development. Those who have been to Mark s courses will know about his passion and ability to cut through jargon, simplify technical issues and provide real life examples. What makes different from other providers: We don't regurgitate traditional textbooks; instead we share real life experiences. We explain all the products as they relate to your own lives in plain English. We practice what we preach i.e. We are an authorised Financial Services Provider (License no:43244). We love multimedia and include video and film in all our courses. We also offer a host customised in-house training programmes with respect to the financial markets, financial modelling in Excel and numerous IT topics from an introductory to advanced level. Please contact us for more information. 5