Foreign Exchange

Foreign Exchange - Part 1 (2021)

Updated

Overview

This eCourse consists of three modules on foreign exchange. Module 1 explores the hugely popular FX market and its role in the global economy. Further, it outlines the composition of exchange rates, how currencies are traded, and the benefits of currency trading markets. This module also examines topics such as the difference between hard and exotic currencies, the reason why the US dollar is important, the different exchange rate systems, and the major currency pairs that are traded globally on a daily basis.

Module 2 looks at the reasons behind the growth and performance of foreign exchange market, while examining the redistribution that is happening within the market. It also outlines the typical structure by which a bank organizes its FX business and the different roles played by the various players within that structure. Finally, the module looks at some of the key risks generated by FX businesses and the solutions employed by banks to mitigate these risks.

Module 3 introduces the spot FX market and explains how currencies can be treated similar to commodities in terms of how they can be traded. There is a particular focus on the method by which they are quoted in the market and how a price can be ascertained for any currency pair.

Objective

On completion of this eCourse, you will be able to:
- Define the foreign exchange (FX) market
- List the uses of foreign exchange
- Interpret currency prices quoted in the market
- Identify the different exchange rate systems and currency unions
- identify the significance of the FX market in terms of size and the describe the key market players
- Explain the typical structure which a bank organises its FX business
- Identify the basic characteristics of the spot foreign exchange market
- Recall how spot FX deals are quoted in the market
- Identify the basic characteristics of the spot FX market
- Interpret spot FX rates
- Calculate cross rates
- Understand how and when settlement takes place
- Recognise the significance of the FX market
- List the key market players
- Identify the typical structure by which a bank might organize its FX business

Content

Module 1: Foreign Exchange (FX) Market - An Introduction
Topic 1: Need for FX Market
Topic 2: Overview of FX Market
Topic 3: Uses of the FX Market
Topic 4: World Currencies
Topic 5: Exchange Rate Systems
Topic 6: Currency Unions/Areas

Module 2: The Foreign Exchange Business
Topic 1: Overview of FX Market
Topic 2: Market Data & Analysis
Topic 3: Key Market Participants
Topic 4: Market Developments
Topic 5: Structure of a Bank’s FX Business
Topic 6: Settlement Risk

Module 3: FX Spot Market - An Introduction
Topic 1: Overview of FX Spot Market
Topic 2: Spot Market Quotations
Topic 3: Cross Rates
Topic 4: Value Dates

Details

Code
TEPFE21001401
Venue
ePlatform
Relevant Subject
Type 3 - Leveraged foreign exchange trading
Tags
Updated
Language
English
Level
Introductory
Hours
SFC:2.50, PWMA:2.50
Fees
All Member: HK$710
Staff of Corporate Member: HK$710
Non-Member: HK$1050