Introduction to FX

This course provides an introduction to foreign exchange markets. It introduces the basic principles for trading exchange rates, the main participants, and the most actively traded currency pairs. It looks at the market convention for quoting exchange rates and how to calculate cross rates. It looks at the key drivers behind the market including the carry trade. It also explains the implication the interest rate differential between currencies has on calculating forward rates.

Suitability

For individuals new to financial markets

Learning Outcomes

At the end of this course delegates should understand

  • Key characteristics and participants of the FX market
  • Popular FX crosses, floating and pegged currencies
  • The drivers of the FX markets and how to price a carry trade

Course Content

Basics of the FX Market

  • Market liquidity, size & growthMost active currencies
  • Market participants

ISO Pairs

  • ISO Codes
  • Base & variable
  • The sequence for major pairs

FX Trading

  • Types of FX deals
  • Bid/offer spread
  • Popular FX crosses
  • Calculating cross rates
  • Floating & pegged currencies

FX Market Drivers

  • Supply & Demand
  • Interest rate differentials
  • The carry trade
  • Risk appetite & capital flow
  • Trade imbalance
  • PPP & the Big Mac index
  • Commodity currencies

Exercises: Pricing an FX carry trade

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of a cohort was promoted within 2 years after participating in an Alpha course.

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of participants felt more confident in their role, following an Alpha commercial leadership course.

Why study with Alpha?

Innovation and creativity born from experience

We are thought leaders in instructional and learning journey design and holistic solution architects. We have extensive finance and investments experience combined with skills application to deliver performance improving results. We develop immersive learning environments that maximize time to productivity, support talent retention and added value to improving quality of hires.

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We are focused on mining the embedded organisational intellectual capital for the benefit of the next generation. We create and curate best in class practice gathered from our experience with the leading financial institutions. We design our programmes with the end in mind – what results are you trying to achieve with this intervention? What metrics will we set ourselves to achieve that?

Generation Proof

Quality and innovation, using current market and industry best practices, have made us a trusted partner in delivering dynamic and motivating training for the financial and capital markets. Our programmes are generation proof and responsive to evolving learner needs and styles. Our solutions use a multi-stakeholder engagement strategy that expands beyond relationships between the learner and learning provider. We create connections with managers, peers and the wider business to drive impactful return on investment..

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