Global Trader Simulation - 2 Day

In this two day simulation, participants will build upon their existing knowledge of FX and money markets. In teams, they will develop and implement an integrated trading strategy for managing foreign exchange and interest rate risks in a dynamic market. Participants will measure trading results in spot and forward net exchange positions and multiple money gaps, using current best market practices.

No sessions currently available. Contact client services to get the next available date.
No advance preparation required.
Day 1

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
  • currency 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
  • (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 flow
  • Quick Quizzes:
  • (1) Simple vs. Compound Interest Calculations
  • (2) GAP Reports
  • (3) Cost-to-Close Calculations

Global Trader Simulation

  • demo of simulation software/rules
  • Trading Session 1 - FX Spots and MM Gaps

Day 2

Review final reports from Trading Session 1

  • on/off balance sheet accounts
  • FX Profits & Losses
  • MM Profits & Losses
  • cumulative future cash flows
  • exchange and liquidity blotter

FX Forwards

  • define obligations/cash flow implications in FX forward agreements
  • forward rate calculations
  • fully hedged FX forward positions
  • common value dates
  • P/L calculation on forward NEP
  • impact of forward trades on exchange and liquidity blotter

Global Trader Simulation

  • Trading Session 2 - FX Spots, FX Forwards & MM Gaps

Review final reports from Trading Session 2

  • on/off balance sheet accounts
  • FX Profits & Losses
  • MM Profits & Losses
  • cumulative future cash flows
  • exchange and liquidity blotter

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.