Description
Guy O’Loughnane – CFI Education – Foreign Exchange – Deliverable Forwards download, Guy O’Loughnane – CFI Education – Foreign Exchange – Deliverable Forwards review, Guy O’Loughnane – CFI Education – Foreign Exchange – Deliverable Forwards free
Guy O’Loughnane – CFI Education – Foreign Exchange – Deliverable Forwards
Foreign Exchange – Deliverable Forwards
Become an expert on Foreign Exchange forwards using real-world scenarios which highlight the advantage of this Capital Markets product in hedging and trading.
Learn all about how market professionals talk about and trade FX forwards
Understand the math behind calculating forward FX prices and cross-rates
Explore how to manage a nostro account and interest rate exposure using FX forwards
Overview
Foreign Exchange – Deliverable Forwards Overview
This course titled Foreign Exchange – Deliverable Forwards covers a wide range of important topics, teaching you how to use deliverable forwards effectively. First, you will learn the benefits and drawbacks of these tools and understand how forward points work. We will explore forward FX prices, forward cross rates and forward FX broken dates. You will also learn strategies to deal with interest exposure, as well as how to manage a nostro account. After this course, you will have a more comprehensive understanding of how to use deliverable forwards to your advantage.
Foreign Exchange – Deliverable Forwards Learning Objectives
Explain the financial benefits of using FX deliverable forwards
Identify the differences between a spot, a forward, and a forward outright
Gain familiarity with forward foreign exchange terminology and understand its limitations
Calculate forward FX prices, forward cross rates, and forward FX broken dates
Use forward FX trades to manage a nostro account and interest rate exposure
Who Should Take This Course?
This Foreign Exchange – Deliverable Forwards course is great for anyone considering hedging currency risk exposure. Anyone interested in a career involving forwards or currency trading can benefit by understanding the key ideas discussed in this course.
What you’ll learn
Introduction
Course Introduction
Downloadable Material
Deliverable Forwards
Deliverable Forwards Overview
Deliverable Forwards Transaction
Forward Outrights
Why Use Foreign Exchange Forwards?
Calculating Forward Points
Forward Point Calculation Example
Forward Point Calculation – Exercise
Variable Exchange Rate (Fixed Interest Rates)
Fixed Exchange Rate (Narrower Interest Rate Differential)
Fixed Exchange Rate (Wider Interest Rate Differential)
Fixed Exchange Rate and Interest Rate Differential (Lower Nominal Rates)
Fixed Exchange Rate (Base Currency Rate Higher Than Counter Currency)
Forward Points Table
Calculating Sub 1-Year Forward Points – Example
Sub 1-Year Forward Point Calculation – Exercise
Forwards in Action
Nostro Account
Market Time Periods
Bank’s Nostro Account
Unbalanced Nostro Accounts
Salami Slicing
Deliverable Forward Confirmation Ticket
Fixed Counter Currency Amounts
Unequal Notional Amounts
Market Time Period Questions
Interactive Exercise 1
Midway Check-In
Midway Check-In
Tailored Dates
Tailored Dates and Forward Curves
The Refined Curve
Short-Term Interest Rates
Interest Rate Changes
Event Dates and Kinks in the Curve
Kinked Curve Calculation
Kinked Curves in an Uncertain World
Price Movements
Tailored Dates
Interactive Exercise 2
Market Application
Forward Quotes
Quoting Around Par
Reading a Forward Curve
Managing Forward Exposure
Forward Forwards: How to Calculate
CME IMM FWD-FWDs and Rolls
Calculating a Forward Cross Rate
Interactive Exercise 3
Conclusion
Conclusion
Qualified Assessment
Qualified Assessment
This Course is Part of the Following Programs
All Capital Markets & Securities Analyst (CMSA)® Courses
Foreign Exchange – Deliverable Forwards is part of the Capital Markets & Securities Analyst (CMSA)®, which includes 41 courses.
Skills Learned
Trading strategies used in the finance and capital markets
Career Prep
Work in capital markets, whether on the buy-side or the sell-side
