Background

• The development of the market
• Market participants and their roles
• Market volume contributions

The Spot Market

• How rates are quoted
• Market terminology and conventions
• Calculation of cross rates

Foreign Exchange Trading

• Position keeping
• Profit and loss
• Calculating cross rates from spot rates

Forward Rate Derivation

• Basic financial maths
• Forward rate derivation
• Interest rate differentials
• The effect of a change in spot rate

Forward Rates

• Application to the spot market
• Deriving outright rates before and after spot date
• Adjusting values of existing contracts

Currency Options

• Option terminology and principles
• Hedging and speculation with options
• Pay-off profiles
• Exchange traded and OTC options
• Options Pricing
• Strategies in Brief