Simon Rogers – Foreign Exchange Master Class

Navigating the Complex World of Foreign Exchange

This is the perfect core course for finance majors, bankers, corporate treasurers, accountants, candidates for the CFA, MBA or ACI… in fact anyone who wants to get a better understanding of the global foreign exchange (FX) markets.

• Where are companies exposed to currency risk in their operating cycle?
• What terminology will you encounter in the FX markets?
• Quoting and dealing spot FX.
• Deriving cross rates from three currencies.
• Forward FX: Why is it needed and how is it calculated?
• Understanding forward points and the concept of trading at a premium or discount.
• Non-Deliverable Forwards (NDFs) and their role in restricted FX markets.

What You’ll Learn In Foreign Exchange Master Class

Introduction

• New Lecture

Foreign Exchange (FX) Risk In The Working Capital Cycle

• Risk In The Working Capital Cycle – Payables (3:17)
• PreviewRisk In The Working Capital Cycle – Inventory (2:10)
• Risk In The Working Capital Cycle – Sales (1:05)
• Risk In The Working Capital Cycle – Receivables (1:56)
• Risk In The Working Capital Cycle – Cash (3:19)

The Practical Side To Managing Currency Risk

• Establishing A Risk Management Policy (3:54)
• PreviewISO Conventions For Quoting Foreign Exchange (4:37)
• FX Jargon & Terminology (3:32)

Spot Foreign Exchange, Cross Rates And Quotations

• Spot FX & Bid Offer (5:01)
• The Role Of Brokers (2:33)
• (In)Direct Quotations (2:16)
• Cross Rates – Same Base Currency (3:27)
• PreviewCross Rates – Different Base Currency (3:49)
• Cross Rates – Quoted With Algebra (2:07)

The Practical Side Of Managing FX Risk

• Herstatt Risk (3:06)
• Pre-Settlement Risk (3:09)
• FX Value Dates (3:51)
• Modified Following Business Day Convention (4:04)
• Profit & Loss (3:42)

Forward Foreign Exchange

• Money Market Interest Rate Conventions (3:43)
• PreviewCalculating Forward FX Rates (7:32)
• Forward FX Points (3:50)
• Forward Points: Premium & Discount (2:35)
• Non-Deliverable Forwards (NDFs) (4:17)