Cash and Derivative Forex Products: Characteristics and Uses

LEVEL: INTRODUCTORY LEVEL

▪	Introductory the characteristics and market conventions of vanilla and exotic FX instruments
▪	Master the valuation principles of FX instruments and their market behaviour
▪	Understand trading strategies of FX options
▪	Understand the constraints and anticipations of a corporate treasurer and hedge commercial FX positions

▪	FX market characteristics - Introductory
▪	Characteristics and calculation of forward FX - Introductory
▪	Characteristics, market conventions and uses of FX swaps and NDF - Introductory
▪	Characteristics, market conventions and uses of standard and exotic FX options - Introductory
▪	Plain vanilla FX options: pricing and book running - Introductory
▪	Strategies of Import/Export FX positions - Introductory

▪	Learn the essentials of FX markets and products to help decision-making and negotiations
▪	Essential knowledge for any bank associate who has to deal directly or advise customers on FX markets
▪	Exposure to the main strategies of standard and exotic FX instruments

▪	Sales
▪	Back office and middle office
▪	Internal controls, audit
▪	Junior FX traders, junior fund managers
▪	Financial intermediaries
▪	Corporate treasurers

Introduction: The Foreign Exchange (FX or Forex) Market
▪	Overview
▪	Key players and product characteristics
▪	Forecasts (macro-economic analysis/technical analysis)
Characteristics and Use of Standard FX Instruments
▪	Spot FX
▪	Key-players and main currencies
▪	Market conventions
▪	Relationship between commodity markets and FX markets: the oil case
▪	The carry trade
▪	Discounting cash-flows
▪	Forward FX
▪	NDF: the examples of KRW and BRL
▪	FX swaps and CIRS
▪	Forward FX for maturities longer than 1 year
▪	Practical workshop . Forward FX calculation in EXCEL™ . Covering forward FX with FX swaps
Characteristics and Uses of Standard and Exotic FX Options
▪	Quotation of FX option
▪	Introduction to pricing models
▪	Black & Scholes applied to FX options: Garman Kohlhagen model
▪	Sensitivities to price components: delta, gamma, vega, theta, rho
▪	Volatility and smile
▪	Managing a portfolio of FX options
▪	Characteristics and use of exotic options
▪	(binary, single barrier, double barrier, Asian etc.)
▪	Import/export hedging strategies (with standard and exotic options)
▪	Examples of FX structured products (corridor, dual currency deposit etc.)
▪	Practical workshop . Calculate maximum loss, real guaranteed rate and breakeven level(s) of the main FX option strategies . Breakeven calculation of exotic options