Master practical currency exchange trading & risk management (hedging) using spot, swaps and forwards
Welcome to the World of Foreign Exchange
What you’ll learn
- Know the fundamentals of the foreign exchange market, including its organization, key participants, products, and trading motivations.
- Confidently read, interpret, and communicate FX quotes, understand settlement rules, and navigate the conventions that underpin the global currency market..
- A solid understanding of the potential sources of currency risk, the key factors that determine its level, and basic knowledge of how to mitigate FX risk.
- Understand market FX swap: structure, how swap points calculation, derive FX forward rates, use swaps to bridge timing gaps between settlement dates..
- Have practical skill to hedge FX short and long positions.
- Create a synthetic FX forward by combining a spot FX trade with a money-market swap.
- Convert a home-Learn about FX swap variations, such as cross-currency interest rate swaps and basis swaps.currency price into an FX quote..
- Learn basis of currency derivatives: FX swaps and forwards.
- Organization of currency market.
- Key participants trading on FX market.
- Currency (FX) spot transactions.
- Currency Trading motivations.
- How to mitigate currency (FX) risk.
- ISO currency codes.
- Base and quoted currencies.
- Understand settlement rules.
- Learn currency market conventions.
- Understanding currency risk sources.
- Volatility of spot rates.
Course Content
- Introductie –> 2 lectures • 6min.
- FX marketL standards and conventions –> 1 lecture • 10min.
- An introduction to currency risk and hedging –> 1 lecture • 8min.
- Currency Swaps and FX Forwards –> 1 lecture • 19min.
- Currency risk management –> 1 lecture • 9min.
- Course wrap up –> 1 lecture • 3min.
Requirements
Welcome to the World of Foreign Exchange
Did you know that the foreign exchange market (Forex or FX) is the largest financial market in the world?
Every day, trillions of dollars are traded as global currencies are bought and sold — shaping exchange rates and impacting economies across the planet.
Operating 24 hours a day on business days, the Forex market is a truly global and dynamic environment where professional financial institutions dominate trading activity.
But what really happens in the Forex market?
In this course, you’ll explore how currencies are exchanged, and how instruments like FX spot transactions, forwards, and swaps are supporting trade and investment, and used to manage risk.
Curious to learn more? View the free accessible parts to learn more about the course roadmap and topic basket of this course.
Course roadmap and topic outline per section
Section: Getting Started with the Currency Market
- Key topics: currency market organization, key participants, products, and trading motivations.
- Your first step in the forex market
Section: FX market standards and conventions
- Key topics: settlement timelines, ISO currency codes, F X rate quotations, spreads, and cross rates.
- Your learning: confidently read, interpret, and communicate FX quotes, understand settlement rules, and navigate the conventions that underpin the global currency market.
Section: An Introduction to Currency risk & Hedging
- Key topics: the main sources of currency risk exposure; a practical example hedging.
- Your learning: understanding of currency risk sources and determination factors; introduction to mitigate FX risk.
Section: FX Swaps & Forwards
- Key topics: currency derivatives – FX swaps and forwards
- Your learning: understand and use money market FX swap (structure); swap points calculation: derive FX forward rates: other FX swap variations (cross-currency interest rate swaps, basis swaps.
Section: Currency Risk Management
- Key topics: the practice of managing FX risk on foreign-currency payables and receivables;
- Your learning: how to hedge FX short and long positions; create a synthetic FX forward; convert a home-currency price into an FX quote
OUR OTHER UDEMY AVAILABLE COURSES
If you work for a bank or other financial institution and want to boost your career: Udemy eLearning works!
Since 2005 we design education programs for professionals who do not have a background in finance.
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- Understand Banks & Financial Markets (more than 36.000 participants)
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