Foreign Exchange Markets (FC in Fin. Markets – IV)

₹170.00

SYBFM — SEMESTER – IV

Author: Chandra Iyer

Suraj Agarwala

FOURTH REVISED EDITION 2023

Categories: BFM, Foundation Course – Elective, S. Y. BFM, Semester - IV

Description

Description

SYLLABUS

No.	Modules/ Units
1	Foreign Exchange Market – An Introduction:
	FOREX trading volume, FOREX trading locations, Details about major traded currencies, Evolution of foreign exchange, Market and Foreign Exchange System. Market Participants: Banks and Financial Institutions, Merchants, other customers, speculators and hedgers, Central Bank. Forex dealers and market makers and brokers, FOREX – trading and SWIFT Robots.
2	Introduction to Indian Foreign Exchange Market:
	FOREX market in India: A historical perspective FERA Vs. FEMA, Pre –liberalization Exchange Rate Regime in India and Hawala market, Brief introduction to currency convertibility in current and Capital account.
3	Operational aspects of foreign exchange market and foreign exchange contracts:
	(a) Floating Rate, Currency Boards and Currency Basket Systems, Brief review on various exchange rate regime, Advantages of free and Fixed Exchange Rate regime, Pros and Cons of managed floating exchange rate regime, Prevalence of Currency Boards Regime, Practice of Currency Basket Regime. (b) Foreign Exchange Contracts: Spot and Forward Contracts Cash, Spot trading Trade Date, Settlement PR date Spot trading roll over mechanism. Foreign Exchange Forward contracts, Fixed Maturity Contract, Partially Optional Contract, Fully Optional Contract, Non-Delivery Forward Contracts, Foreign Exchange Futures Contract, Different Dimensions of Foreign Exchange Future, Contract specification trading at National Stock Exchange of India.
4	Foreign Exchange Arithmetic and Risk Management:
	Types of Exchange Rates. Direct Rate, Indirect Rate and Cross Rate. Arbitrage – Geographical and triangular. Interest Rate – spot Contracts, forward contracts and SWAP Points. Risk Management in Foreign Exchange Market – Need and importance of foreign exchange management methods adopted (Spot and forward, arbitrage, cross currency deals, SWAPS, options and futures.