Dealing Room Activities

Course details

In this course, participants will acquire the skills and knowledge necessary to improve their efficiency and productivity in dealing room activities. Participants will learn about foreign exchange markets, the money markets, the time value of money, and derivatives.

Course Description:

In this course, participants will acquire the skills and knowledge necessary to improve their efficiency and productivity in dealing room activities. Participants will learn about foreign exchange markets, the money markets, the time value of money, and derivatives.

Course Objectives:

• List the main participants in the foreign exchange market.
• Discuss the money market and the concept of yield curves.
• Explain the time value of money concept and its applications.
• Describe options and the related 81:/pricing techniques.
• Describe forward contracts and the related 81:/pricing techniques.
• Explain future contracts and the concept of leverage.

Course Outline:

Module 1: Foreign Exchange

• Introduction
• Participants in the foreign exchange market
• What determines the price?
• Trading limits
• Hedging
• Case studies

Module 2: Money Markets and Yield Curves

• What are the money markets?
• Participants in the money markets
• Central bank objectives
• Hedging
• Yield curves
• Interpolation
• Explain the yield curve

Module 3: Time Value of Money

• Timelines
• Future values (compounding)
• Time values (discounting)
• Time value of money applications
• The multi-period case

Module 4: Options

• Options overview
• Options strategies
• Expiration, exercise and assignment
• Options 81:/pricing

Module 5: Forward Contracts

• Forward contracts
• 81:/pricing forwards

Module 6: FutureContracts

• Future contracts
• Why trade contracts
• Clearinghouse
• Leverage

Assessment Strategy:

Participants will be informally assessed on their interaction during sessions and their participation in exercises