Foreign Exchange
Familiarise yourself with what the complex world of foreign exchange means for your organisation. Use this course to understand how to hedge risk to protect your organisation, and gain an awareness of the opportunities offered by foreign exchange.
£150 +VAT
Foreign Exchange
£150 +VAT
365 days’ access
This course will enable you to
- Understand how foreign exchange risks arise, and how they can turn into profit or loss
- Familiarise yourself with financial contracts available for fixed exchanges of currency
- Appreciate the relationship between currency volatility and the price of options
- Advise on “over-the-counter” and “exchange-traded” modes of trading foreign exchange financial instruments for delivery in the future
- Discover different types of supplier of foreign exchange service along with some specialist new entrants
About the course
Many organisations have to deal in currencies different to their own base currency, whether this is through using foreign suppliers or accepting payment from customers overseas. Either way, this can introduce risks and complications. In order to advise your organisation and your clients, you need to understand the steps organisations can take to hedge against the risks and perhaps even reap some rewards.
This course offers a detailed insight into the world of foreign exchange. Get to grips with the risks to your organisation arising from foreign exchange and assess your options for minimising that risk. Learn about spot and forward transactions and why volatility between currencies plays a key role in determining the price of options. You’ll also compare and contrast the two main modes of trading foreign exchange financial instruments for delivery in the future.
Contents
Foreign exchange risks
How risk arises
Purchases and sales in foreign currency
Disguised exposures
Budgets and assumed rates
Economics of spot and forward
How contracts are priced
Spot transactions
Forward contracts
Pips in practice
Future foreign exchange contracts
Economics of options
Foreign exchange options
Call and put options
The risks of options
Size of the option premium
Options vs forwards: there is no free lunch
Over-the-counter and exchange-traded
Knowing the difference
Over-the-counter: Advantages and drawbacks
Futures and options exchanges
Exchange-traded instruments: Advantages and drawbacks
Buying and selling contracts
Types of provider
Fintech
Specialist payment firms
Risks of working with specialists
Types of client
Commercial banks
Financial market infrastructures
Author
Bob Lyddon
An experienced management consultant both privately and with PwC.
14 reviews for Foreign Exchange
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Raphael Celestino –
Hard to follow at certain points. Language is not very well-thought out and descriptive.
Tanya Bassi –
I took this course mainly out of curiosity – my organisation uses some basic FX instruments, and I wanted to understand them a bit more. I found the course quite technical; it’s been over 15 years since I last audited an FX desk at a bank, so it felt like I was learning everything from scratch again. Because of that, I wouldn’t really recommend it for beginners or for those who are just “curious” (like me). It also took me much longer than the advertised four hours to complete, and since I’m not actively involved in hedging strategy in my current role, I suspect a lot of it won’t stick in the long-term. There were also a few mistakes in the course notes too, which didn’t help. That said, I did come away with a better understanding of FX instruments overall – so while it was challenging, it was still worthwhile in the end.
Niall Vince –
Very useful course if you want to brush up on your FX knowledge.
Ian Haworth –
Provided useful information. A bit heavy going at times but that probably just underlined the complexity of the subject matter.
Chi Jian –
These contents are surely excellent but it would be better if you add how to book the FX hedging in different circumstances
Song Zejun Young –
This is the area that I am not very familiar with. The course is quite informative.
Nigel –
Excellent course
Boon Mian Lian –
Good refresher on forex hedging tools
Alycia Boyce –
I FOUND THIS COURSE VERY INTERESTING BUT MAYBE AT A HIGHER LEVEL THAN I HAD ANTICIPATED.
Stefan Craciun –
very informative and well explained content
Clyde Haynes –
This course is very practical and attempts to explain some of the critical and complex areas of Foreign Currency Management .
Sue Moore –
This has been a very intensive course. Some of it was hard to follow – not having had much experience of foreign currency transactions – and it clear that other students had struggles. It was that the sentences were often long and many acronyms and I had to read most of the sentences three times. But I think I got most of it and has been quite a learning curve and could be useful in due course. I would just suggest that if there’s a way yo lay out the information so that sentences are reduced, and transactions are shown in layers perhaps – or links to a powerpoint that does the example by stages – it would make it easier to digest
Simon Robson –
Exchange risk mitigation options knowledge awareness for my job…this refreshed my previous learning to provide confidence and clarity for a working scenario
Michael Davis –
Useful insight into a part of the business that i have little experience of