Global Trader Simulation - 2 DayParticipants will develop and implement an integrated trading strategy for managing foreign exchange and interest rate risks in a dynamic market. They will generate trading results in a variety of net exchange positions and interest rate gaps, using current market practices. Participants will also build their risk assessment skills in structuring and pricing derivatives solutions to hedge currency exposure. Using an options pricing model, participants will manage an options portfolio and develop a practical understanding of how to assess options pricing sensitivities, stress testing and delta hedging techniques. |
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| Relationship managers responsible for structuring and selling derivatives solutions to manage currency risk;
Risk managers responsible for measuring, reporting and managing market risks in options and net exchange positions, including interest rate gaps;
Traders and sales professionals with a desire to broaden and deepen their understanding of foreign exchange and money markets and products ;
Personnel providing support to any trading/sales areas;
Audit and financial control |
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| No advance preparation required. |
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Students will be able to:- Develop and implement an integrated trading strategy that includes net exchange positions in a variety of currencies and manage multiple cash accounts in moving markets
- Make a market by quoting two-way prices and executing trades in spot, forward and FX swap contracts, interest rates in a multitude of different tenors and options on FX rates
- Identify and measure profits/losses and market risks in their own net exchange positions and interest rate gaps from a daily review of trading reports that are the same as current best practices
- In response to a series of news alerts, price and execute a series of options, analyze profit/loss effects to changes in option price sensitivities, stress test options portfolio and review delta hedging techniques
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Day 1- Role of major players in FX and MM
- Economic factors that determine market prices and trading ranges
- FX spot markets, products, trading conventions and pricing techniques
- Defining, managing and reporting NEP's, including effect on cash
- GT simulation demo
- Trading Session 1: Spot FX and O/N
- Review trading results and final reports
- YC analysis and gapping strategies
- IR risk reporting and management
- Trading Session 2: Spot FX and MM gapping
- Parallel Market Trading/Close with Central Bank
| July 1- FX forwards
- Forward pricing using interest covered arbitrage techniques
- Reporting and management techniques in forward net exchange positions
- Trading Session 3: Spot FX, Forwards and MM gapping
- Parallel Market Trading/Close with Central Bank
- FX Swaps
- Structure and common uses for FX swaps
- Reporting and management of FX swap positioning and trading
- Trading Session 4: FX swaps
- Parrallel Market Trading/Close with Central Bank
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| Clients who register for this course will receive a complimentary 4-month subscription to FT.com. The Financial Times is the world's most respected financial newspaper, providing a broad assessment on finance, business and the industrial sector. The move to the electronic version follows an ongoing review of our environmental responsibilities as a global business and as part of the Pearson group. FT.com also has features that are not available in hard copy, such as: Special Reports, Alphaville, editor blogs, education sections and much more! Subscriptions will start within 6-8 weeks of the start of class and are limited to one subscription per client. (Please note: as of May 1, 2011, the electronic subscription replaces the hard-copy 3-month Financial Times subscription.) |
Lunch is included for all students taking day classes. |
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