Training Courses
Introduction to Money Markets & Foreign Exchange
Category: Money Markets and FX
Course level: Introductory
In house
The aim of this one-day workshop is to provide a fast-track introduction to the money markets and foreign exchange.
No prior knowledge is assumed and all terms will be fully explained.
Case studies form an integral part of the course, to allow the delegates to consolidate the information and provide the basis for group discussions.
Objectives
By the end of this workshop, delegates will be able to:
- understand the basics of the money markets and foreign exchange
- calculate present and future values (i.e., DCF calculations)
- calculate forward rates
- understand the factors that influence interest and FX rates
Length
1 dayCourse Content
Introduction
Overview of financial markets
Risk and return characteristics
Current developments
Cash flows: the underlying of any financial instrument
Time value of money and interest rates
Factors determining the value of money
Future value and present value
Discount factors and compound factors
Yield vs return
Differences between capital markets and money markets
Explanation of the commonly used market conventions
US bond basis
US money market basis
UK money market basis
ISMA convention
Actual/Actual
Payment day convention
Preceding and following payment day convention
Modified following payment day convention
FRN convention
Money market instruments
Discounted securities vs interest-bearing securities
Interest rate calculations
Forward markets
Developing a forward market from deposits
Forward rate agreements (FRAs)
Interest rate futures
Foreign exchange markets
Spot FX
Forward outright
FX swaps
Covered interest arbitrage
This course would be suitable for:
- Finance and accounting
- HR and training
- Investment administration and operations
- IT and software developers
- Legal & Compliance
- New entrants
- Sales and marketing
This course would be suitable for these exams:
- CFA - Level 1
- CFA - Level 2
- IMC
- UKSIP - Introduction to Investment
