Expert in Dealing Operations on Foreign Exchange Markets Training Program

Expert in Dealing Operations on Foreign Exchange Markets Training Program at “KROK” University 

(in accordance with Regulation of NBU Board № 234 of June 21, 2001)

І. Theoretical training

Topic 1. Foreign Exchange Market and Monetary Transactions.

Contact hours - 4.

The notion of foreign exchange market and monetary transactions. Objectives and role of the foreign exchange market. Classification of the foreign exchange markets. Exchanging and over-the-counter market. Foreign exchange market players, their goals and interests. Arbitrageurs, hedgers and speculators. Features of the foreign exchange market in Ukraine, its infrastructure and state regulation. 

Topic 2. Deposit Operations

Contact hours - 3.

The notion of deposit operations. Fund raising and distribution. Deposits urgency. Days of agreements conclusion, value date and end date. Interest rates, and peculiarities of their calculations. LIBOR rate. Parties BID and OFFER. Margin, the factors which affect the margin rate. Deposit position. Interest rate arbitrage. Discount market. Eurocurrency market.

Topic 3. Current Conversion Operations.

Contact hours - 5.

The notion of current conversion operations. FOREX Market. Arbitration and client conversion operations. Exchange rate.

Currency quoting. Direct and indirect quotes. Basis points. Parties of quoting. Spread. Currency position. Cross rates. Spot and outright agreements. 

Topic 4. Forward Transactions.

Contact hours - 6.

The notion of forward transactions. Factors which influence the forward transactions. Parity index of forward rates. Premium and  discount. Swap points. The use of forward contracts to minimize risks. Profit (loss) under the forward contract. 

Parties liability. Closing and Extension of the contract. The course of expansion. Fixed and optional forward contracts. 

Forward rate/forward: definition, calculation, application.

Agreement on forward rates. Conditions of Contract. Rate agreement. Buying and selling of contracts. Profit (loss) calculation.

Topic 5. Financial Futures.

Contact hours - 16.

The notion of financial futures. Short and long positions. Determinants of futures markets. Standardization of contracts.

Futures price and its components. Types of futures contracts. Features of pricing of different types of contracts. Basis and price changes. Positive and negative charges. Yield curve and the futures price. Cheapest bonds to supply.

Exchange trade of futures contracts. Clearinghouse, its role and functions. Types of margin, the purpose of each type. Matching price. Profit (loss) on futures contracts. 

Futures strategies.

Features of futures trading on the Ukrainian Interbank Currency Exchange (Interbank).

Trading Rules on Interbank Currency Exchange. 

Topic 6. Options

Contact hours - 12.

The notion of option contracts. The authority to purchase and sell. Sell price. Option contracts Parties. Parties rights and liabilities. Options: American and European styles.

Options contracts types. Contracts specification. Option contracts exchange trade and OTC trading. The system of margin.

Premium, volatility and other factors affecting the value of the option. Internal and time value of the option. In-, at-, and out-the-money options. Plain Vanilla option. Profit (loss) under the options contracts.

Graphic representation of options. 

Sensitivity coefficient.

Vertical spread.

Topic 7. Swap

Contact hours - 12.

Contact hours - 3.

The notion of swap. Currency swap.

Tom next swap. Hedging costs.

Vanilla swap.

Topic 8. Classical and Technical Analysis of Speculative Operations in the Foreign Currency Markets.

Contact hours - 27.

Basis of fundamental (classical) analysis. Analysis of the market and understanding of the economic indicators. Inventories and expenses. Consumer courage. Consumer credit. Consumer price index. Index of consumer prices. Unemployment. Federal budget.

Gross national product. The index of business optimism. Personal income and personal expenditures. Retail.

Trend and its main characteristics. Lines of support / resistance.

Gaps (GAPF). Plotting.

Technical analysis. Fundamentals and philosophy of technical analysis. Dow Theory.

Markets factors: transactions volume, open interest.

Technical indicators: moving averages, oscillators, stochastic index, relational strength index,

momentum, rate of change,

 smoothed rate of change,

Decision making psychology. Individual psychology of exchange player. Market crowd and decision making.

Topic 9. Risk Management for Foreign Exchange Transactions.

Contact hours -7.

The economic essence of risks and main approaches to risks control. The concept of risks. Risks types and peculiarities. Evolution of risk control system.

The methodology of control over certain types of risk:

Portfolio risk. Consolidation and aggregation of risks. Economic-statistical and mathematical tools used in the of risks control process. Present and future value. Elements of probability theory. Correlation. Dispersion. Mathematic expectation. The elements of G. Markowitz portfolio theory.

Currency risk. The risk of opening spot positions, forward, swap (forward/ forward)

positions according to options.

Currency structure of gold and foreign currency reserve. Efficient nominal and real exchange rates. Nominal and real value of gold and foreign currency reserves. Approaches to determination of the currency composition of reserves: transactional, portfolio, careful. Methods of mathematical optimization of monetary structure. Limitations associated with the country's membership in the IMF. Diversification.

Credit risk. Credit risk subtypes. Rating agencies. Credit rating migration matrix. Transactions limiting credit risk (swap, repo). Credit quality of financial instruments. Sovereign immunity.

Interest rate risk. Simple and modified duration. Statistical approaches to control over interest rate risk. Convexity.

Liquidity risk. Liquidity price. Mathematical model of liquidity. Liquid and illiquid financial instruments. Complex of organizational and preparatory measures for control over liquidity risk.

Operational risk. Organizational structure, division of powers. Internal control. Document flow and reporting. The principles of "Four eyes", "Chinese wall". Information management. Regulatory support operations.

Other risks.

Topic 10. Conclusion of agreements dealing equipment Reuters.

Contact hours - 3.

General introduction with Reuters services structure. Specificity of negotiation by Reuters (keywords, commonly used abbreviation). The order of conclusion and confirmation of conversion agreements. The order of conclusion and confirmation of deposit agreements (placement, attraction, deposits extension). Peculiarities of concluding agreements, related to transactions with gold.

Main fields of Reuters-ticket.

ІІ. Practical training

1. Practical lessons in dealing centre of commercial bank (at the foreign exchange market)

Contact hours - 50.

Total hours of training

136 hours

Theoretical training

86 hours

Practical training

50 hours

Pre-registration for training and passing qualification examination is required