Basics of Foreign Exchange Risk Management

Program

To provide an understanding of:
  • Fundamentals of forex markets, key players and their roles
  • Trading mechanism, forecasting and speculation
  • Risks involved in forex markets and their evaluation
  • Role of hedging in managing forex risk and applying trigger signals
  • Real-time examples
  • Day 1
    1. Overview of Foreign Exchange Markets 2. FEMA Regulations
    Cash & Spot Exchange 3. Trading in Foreign Exchange Markets
    Eurocurrency Markets Trading Procedure
    Market Players, Inter bank ,Corporates Management of International Trade Transaction
    Mechanism of making a foreign payment Information Analysis for Trading
    Forex and Interest Rate markets Speculation
    4. Forecasting Exchange Rates International Transactions Financing
    Various theories of forecasting Concept of Volatility in Forex Markets
    Drawbacks associated with these theories
    Technical Analysis
    Real-time example

    Day 2
    5. Foreign Exchange Risks 6. Value at Risk (VaR)
    Types of Risks & exposures for corporates, exports, imports, borrowing, competitions Introduction to VaR
    Measurement and quantifying of Risks Application of VaR in Forex Markets
    7. Futures, Forwards and Swaps 8. Hedging in Forex Market
    Forward/Futures/Swaps/FRA Hedging through Forward/Futures/Options/Swaps
    Options Pricing of Options/Swaps/Forwards
    Types of Options like range notes, spreads, knock-ins/outs/digital/barrier, leveraged etc. Factors affecting pricing
    Risk Return and Hedging Profile Understanding trade logic by forecasting factors affecting pricing
    Product Structuring
    Actual illustration
    9. Case Study
    Where Corporate Treasuries have failed using FX derivatives
    Practical structures used by Indian and International corporates

    Participants attending the entire course shall be eligible to receive Participation Certificate from the BSE Institute Ltd.
  • Senior Executives from Banks, Corporates, & Financial Institutions,
  • Dealers
  • Traders
  • Brokers
  • Consultants
  • Capital Market Intermediaries.
  • 2 days
    10.00 am to 5.30 pm

    Rs. 7,000.00 + Applicable Taxes per participant inclusive of tuition fees, and (morning / evening) refreshments only.

    For further details regarding contents,
    E-mail: training@bseindia.com