Samara State University of Telecommunication and Technologies

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1 Samara State University of Telecommunication and Technologies

2 Information Systems for Financial Analyses and Investment (ISFAI) Customer-oriented Systems (CRM) Internet Trading on Financial markets and Stock market systems (ITFM)

3 Kudryashov Alexander Anatolievich, assistant professor Department: E-commerce Skype: Alex

4 Goal of the curricula: Provide introductionary knowledge of the topics of financial and stock markets. Introduce the principles of trading and the process of trading system creation Requirements for course participants: Participants of the course are not expected to have deep preliminary knowledge in computer science or financial and stock markets

5 Requirements for the lecturers: According to the listed topics, lecturers for the curricula should have basic knowledge financial and stock markets as well as software using in this field Contents of the training: The training will concentrate on the general description of the course contents, teaching methods and terms

6 Internet trading on stock market Main Internet trading financial instruments Financial risk types and credit ratings Internet trading on FOREX market Rate of exchange formation fundamentals Technical analysis of financial instruments Decision-making support system creation

7 Stock exchange basics. Choosing the broker Reaching familiarity with Metatrader 4 interface Fundamental analysis of financial instruments Technical analysis of financial instruments Decision-making support system creation

8 A stock market or equity market is a public entity (a loose network of economic transactions, not a physical facility or discrete entity) for the trading of company stock (shares) and derivatives at an agreed price; these are securities listed on a stock exchange as well as those only traded privately.

9 A security or financial instrument is a tradable asset of any kind. Securities are broadly categorized into: debt securities (such as banknotes, bonds and debentures) equity securities, e.g., common stocks derivatives contracts, such as forwards, futures, options and swaps

10 The foreign exchange market (forex, FX, or currency market) is a form of exchange for the global decentralized trading of international currencies. The foreign exchange market assists international trade and investment by enabling currency conversion.

11 In finance, an exchange rate between two currencies is the rate at which one currency will be exchanged for another. It is also regarded as the value of one country s currency in terms of another currency. For example, an interbank exchange rate of 91 Japanese yen (JPY, ) to the United States dollar (US$) means that 91 will be exchanged for each US$1 or that US$1 will be exchanged for each 91.

12 A currency pair is the quotation of the relative value of a currency unit against the unit of another currency in the foreign exchange market. The quotation EUR/USD means that 1 Euro is exchanged for US dollars. Here, EUR is called the "base currency" or "unit currency", while USD is called the "term currency" or "price currency".

13 The bid price (also known as the buy price) and the ask price (also known as the sell price) of a security are the prices at which buyers and sellers are willing to purchase or sell that security. The bid shows the current price at which a buyer is willing to purchase shares, while the ask shows the current price at which they are willing to sell.

14 The bid offer spread is the difference between the prices quoted (either by a single market maker or in a limit order book) for an immediate sale (offer) and an immediate purchase (bid). If the current bid price for the EUR/USD currency pair is and the current offer price is , this means that currently you can sell the EUR/USD at and buy at The difference between those prices (3 pips) is the spread.

15 Margin buying refers to the buying of securities with cash borrowed from a broker, using other securities as collateral. This has the effect of magnifying any profit or loss made on the securities.

16 In finance, technical analysis is a security analysis methodology for forecasting the direction of prices through the study of past market data, primarily price and volume. Main technical analysis concepts: trending chart patterns indicators

17 A market trend is a tendency of a financial market to move in a particular direction over time. These trends are classified assecular for long time frames, primary for medium time frames, and secondary for short time frames. Traders identify market trends using technical analysis, a framework which characterizes market trends as predictable price tendencies within the market when price reaches support and resistance levels, varying over time.

18 Uptrend (bull) each successive peak and trough is higher than the ones found earlier in the trend Downtrend (bear) each successive peak and trough is lower than the ones found earlier in the trend

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20 Resistance 3 5 Resistance Support 4 Support 1 Support Support Resistance Uptrend Downtrend

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22 A price pattern is a pattern that is formed within a chart when prices are graphed. Examples of "classical" chart patterns include: Head and shoulders Cup and handle Double top and double bottom Triple top and triple bottom Price channels Wedge pattern Triangle

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26 A series of technical indicators used by traders to predict the direction of the major financial indexes A general outlook on the market's direction is useful for traders looking for strength in individual equities because they ensure that the broader market forces are working in their favor

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31 One of the curricula highlights is a business game to give students practical skills in investment management and technical analysis Global objective - creation and implementation of investment strategy which leads to growth of capital Via Internet communication students from different countries work together, create a team and acquire market skills

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