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
  • Session 1

    1. Overview of Foreign Exchange Markets
  • Cash & Spot Exchange
  • Eurocurrency Markets
  • Market Players, Inter bank ,Corporates
  • Mechanism of making a foreign payment
  • Forex and Interest Rate markets

  • 2. FEMA Regulations

    Session 3
    1. Trading in Foreign Exchange Markets
  • Trading Procedure
  • Management of International Trade Transaction
  • Information Analysis for Trading
  • Speculation
  • International Transactions Financing
  • Concept of Volatility in Forex Markets


  • Session 4
    1. Forecasting Exchange Rates
  • Various theories of forecasting
  • Drawbacks associated with these theories
  • Technical Analysis
  • Real-time example


  • Session 5
    1. Foreign Exchange Risks
  • Types of Risks & exposures for corporates, exports, imports, borrowing, competitions
  • Measurement and quantifying of Risks


  • 2. Value at Risk (VaR)
  • Introduction to VaR
  • Application of VaR in Forex Markets


  • Session 6
  • Forward/Futures/Swaps/FRA
  • Options
    •     • Types of Options like range notes, spreads, knock-ins/outs/digital/barrier, leveraged etc.
    •     • Risk Return and Hedging Profile
  • Product Structuring
  • Actual illustration


  • Session 7
    1. Hedging in Forex Market
  • Hedging through Forward/Futures/Options/Swaps
  • Pricing of Options/Swaps/Forwards
  • Factors affecting pricing
  • Understanding trade logic by forecasting factors affecting pricing


  • Session 8
    1. Case Study
  • Where Corporate Treasuries have failed using FX derivatives
  • Practical structures used by Indian and International corporates
    ing sense out of theories and various structures)


  • Participants attending the entire course shall be eligible to receive Participation Certificate from the BSE Institute Ltd.

    Senior Executives from Banks, Corporates, &ancial Institutions, Dealers, Traders, Brokers, Consultants and other 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