Global Trader Simulation - 1 Day

This one-day simulation will allow participants to review market risks from developing and implementing a trading strategy in spot foreign exchange markets. They will measure their trading results against the same performance criteria that are used by today's practitioners.

No sessions currently available. Contact client services to get the next available date.
Anyone responsible for providing support to trading/sales areas; Market risk management, audit, financial control, legal, technical support, human resources
No advance preparation required.
Students will be able to:
  • Identify key players in foreign echange and money markets and define the role of each
  • Demonstrate a practical understanding of how practitioners provide liquidity in spot FX and interest rates in 24 hour markets
  • Develop a trading strategy in FX spot and money market contracts
  • Identify market risks inherent in open net exchange positions and interest rate gaps
  • Describe how market risks are reported and controller by management
None
Structure of FX and money markets in financial centers
  • major players and their respective roles
  • impact of key economic indicators on level for FX and interest rates
  • currenty quotations
  • standard dealing dates
  • calculations on simple and compound interest rates
  • factors affecting shape of yield curves

FX quoting and positioning

  • market maker vs. price taker/bid vs. offer
  • trending techniques
  • arbitrage
  • FX cash flows
  • net exchange position (NEP)

    Quick Quizzes: (1) market maker vs. price taker, (2) trending, (3) NEP and (4) mark-to-market calculations

    Money market quoting and positioning

    • definition, types and risks inherent in money market gaps
    • gapping strategies
    • quoting vs. calling bank
    • money market cash flows
    Quick Quizzes: (1) Simple vs. compound interest calculations, (2) GAP reports and (3) Cost-to-close calculations

    Global Trader Simulation

    • Demo of simulation software/rules
    • Trading session (FX spots and MM gaps)
    Review final reports: (1) daily statement sheet, (2) FX profits & losses, (3) MM profits & losses, (4) cumulative future cash flows, (5) net exchange position and liquidity blotter

      Summary/Close

Clients who register for this course will receive a complimentary 6 month subscription to the Financial Times and FT.com. The Financial Times is the world's most respected financial newspaper providing a broad assessment on finance, business and the industrial sector. Subscriptions will start within 6-8 weeks of the application process, and are limited to one per client. For questions about your subscriptions call 800-628-8088 or email uscirculation@ft.com. US and Canada enrollees only.

Lunch included for all students taking day classes.