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.
£100 +VAT

Foreign Exchange
£100 +VAT
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
How it works
Author

Bob Lyddon
An experienced management consultant both privately and with PwC.
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