Forex Management: Course Syllabus and Study Notes

PILLAI INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH

Course Syllabus
&
Study Notes

Post Graduate Diploma in Management – IB/bfm

Semester III

Forex management

Prof. D. C. Pai

Syllabus

UNIT 1
THE HISTORY OF MONEY * HOW DID MARKETS FUNCTION WITHOUT COINS AND PAPER MONEY? * BARTER AND ANCIENT TRADE * THE LIMITS OF BARTER * THE DEVELOPMENT OF CURRENCY * THE FUNCTIONS OF CURRENCY
UNIT 2
THE GLOBAL FOREIGN EXCHANGE MARKET * FOREIGN EXCHANGE TURNOVER * SPECULATION IS THE KEY DRIVER * FOREIGN EXCHANGE MARKET CHARACTERISTICS * REGULATION * Foreign Exchange Markets – sum up. * LEADING CURRENCIES * CURRENCY TRADING TRENDS * CURRENCY AS AN ASSET CLASS * Summary
UNIT 3
EXCHANGE RATES AND THEIR MOVEMENTS * INTRODUCTION/DEFINITION. * FACTORS DETERMINING EXCHANGE RATES * CURRENCY MOVEMENT FACTORS * THE IMPACT OF REAL INTEREST RATES * SPECULATION AND OTHER FACTORS
UNIT 4
EXCHANGE RATE MECHANISM * Types and Calculation * Ready or Cash, Tom, spot, Value Date * Spot and forward rates * Direct and Indirect Quotes * Cross Rates & chain Rule * Fixed vs. Floating Rates * Arbitrage in Exchange
UNIT 5
FOREIGN EXCHANGE DEALING ROOM OPERATIONS * Qualities of a DEALER * FUNDS POSITION, CURRENCY POSITION * FRONT OFFICE, BACK OFFICE & MID OFFICE * MANAGEMENT AND CONTROL OF DEALING ROOM * RISK ASSOCAITED WITH fx DEALING ROOM
UNIT 6
Risk in foreign exchange operations * introduction * DEFINITIONS OF RISK AND RISKS IN INTERNATIONAL TRADE * RISKS IN FOREIGN EXCHANGE OPERATIONS * What is risk and various risks in international trade * Management of these risks and various guidelines related to risk management
UNIT 7
Basics of derivatives * WHAT ARE DERIVATIVES * HISTORY AND DEVELOPMENT * Derivatives in India — An Overview * DERIVATIVE INSTRUMENTS * forward contracts
UNIT 8
derivative