Foreign Exchange Risk Management

Rs. 8,050

Program Name: Foreign Exchange Risk Management



To provide an understanding of:

  • Fundamentals of forex markets, key players and their roles
  • Trading mechanism, forecasting and speculation
  • Risks involved in forex markets and their evaluation
  • Role of hedging in managing forex risk and applying trigger signals
  • Real-time examples


Session 1

1. Overview of Foreign Exchange Markets

  • Cash & Spot Exchange
  • Eurocurrency Markets
  • Market Players, Interbank ,Corporates
  • Mechanism of making a foreign payment
  • Forex and Interest Rate markets 


2. FEMA Regulations 


Session 2

  1. Factors affecting Exchange Rates

Session 3

  1. Trading in Foreign Exchange Markets
  • Trading Procedure
  • Management of International Trade Transaction
  • Information Analysis for Trading
  • Speculation
  • International Transactions Financing
  • Concept of Volatility in Forex Markets

Session 4

  1. Forecasting Exchange Rates
  • Various theories of forecasting
  • Drawbacks associated with these theories
  • Technical Analysis
  • Real-time example

Session 5

  1. Foreign Exchange Risks
  • Types of Risks & exposures for corporates, exports, imports, borrowing, competitions
  • Measurement and quantifying of Risks


       2.  Value at Risk (VaR)


  • Introduction to VaR
  • Application of VaR in Forex Markets 

Session 6

  1. Tools of Risk Management
  • Forward/Futures/Swaps/FRA
  • Options
    • Types of Options like range notes, spreads, knock-ins/outs/digital/barrier, leveraged etc.
    • Risk Return and Hedging Profile
    • Product Structuring
    • Actual illustration

Session 7

  1. Hedging in Forex Market
  • Hedging through Forward/Futures/Options/Swaps
  • Pricing of Options/Swaps/Forwards
  • Factors affecting  pricing
  • Understanding  trade logic by forecasting factors affecting pricing

Session 8

  1. Case Study
  • Where Corporate Treasuries have failed using FX derivatives
  • Practical structures used by Indian and International corporates (Making sense out of theories and various structures)

Target Audience: Senior Executives from Banks, Corporates, & Financial Institutions, Dealers, Traders, Brokers, Consultants and other Capital Market Intermediaries.

Duration & Timing: 2 days 10.00 am to 5.30 pm

Fees: Rs. 8050/- (Inclusive of Tax)

Date: May 13 & 14, 2017.

Location: Mumbai 

Participants attending the entire course shall be eligible to receive Participation Certificate from the BSE Institute Ltd.