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Currency Derivative & Forex (NISM Certification)

Name: Currency Derivative & Forex (NISM Certification)
Rating: 3.9 (55 reviews)

Learn about the worlds largest financial instrument with a daily trade volume above 5.1 trillion dollar.

Created byAditya Bakshi

Last updated 6/2020

English

What you'll learn

What are Currency Derivatives
Introduction to Foreign Exchange Trading
Exchange Rate Arithmetic (Cross Rate)
What are Currency Futures
Interest Rate Parity Calculation
Market Participants in Currency Derivatives
Clearing and Settlement Mechanism
Future Trading Strategies
What are Currency Options
Option Trading Strategies

Course content

8 sections • 79 lectures • 2h 0m total length

Introduction1:40
Hey there and welcome to this course on 'Currency Derivatives & Forex Trading'.
Money is a such a crucial and integrated part of everyone's life, yet people know so little about it.
The foreign exchange market is the largest financial market in the world. It is even larger than the stock market, with a daily trade volume above $5.1 trillion, vs $84 billion for equities worldwide.
This course is espically helpful for people preparing for NISM - Series I - Currency Derivative Exam as well as NISM - Series XIII - Common Derivative Exam, helpful as the content of this course is in accordance to the syllabus prescribed by NISM itself.
This course will also prove helpful if you are looking for a career in Finance.
No prior knowledge is expected and all you got to have is a will to learn.
Thank you for watching and happy learning !
(Music in the video taken from : bensound website)

Learning Objective1:22
History of Foreign Exchange - Barter System2:08
Limitations of Barter System2:22
Common Medium of Exchange1:32
What is Forex (FX) ?1:50
Major Currency Pairs0:50
Major Currencies - Dollar (USD)2:20
Major Currencies - Euro (EUR)0:44
Major Currencies - Japanese Yen (JPY)0:31
Major Currencies - British Pound (GBP)0:30
Examine the British pound as Great Britain's currency, its role as a historical reference before World War II, the cable nickname, and its trading against the euro and U.S. dollar.
Major Currencies - Swiss Franc (CHF)0:51
Basics of Currency Markert - Currency pairs1:00
Learn the basics of the currency market, where traders buy one currency and sell another through currency pairs, revealing how exchange rates differ and shift with economic developments.
Basics of Currency Markert - Base/Quotation Currency1:53
Basics of Currency Markert - Two way quotes1:43
Exchange Rate Arithmetic (Cross Rate)1:44
Economic Indicators2:17
Economic Indicators - Gross Domestic Product (GDP)0:35
Economic Indicators - Retail Sales0:30
Economic Indicators - Industrial Production0:29
The index of industrial production reveals changes in industrial output relative to a fixed reference, signaling growth and potential currency strengthening, and the lecture also covers the consumer price index.
Economic Indicators - Consumer Price Index (CPI)0:46
Economic Indicators - Non Farm Payroll (NPF)0:32
Analyze non-farm payrolls, detailing jobs added or lost last month, and how a rise strengthens the currency.
Introduction to Currency Market - Quiz

Learning Objective1:11
What is a Forward Contract ? (Scenario)1:05
What is Forward Contract ? (Thought Process)1:21
Introduction to Forward Contract0:40
Limitations of Forward Contract1:50
Introduction to Future Contract1:25
Futures Terminology2:11
Explore futures terminology in the currency derivative and forex market, including contract size, margin, mark-to-market, value date, and settlement rules.
Differences Between Forward and Futures2:24
Interest Rate Parity (Scenario)2:12
Interest Rate Parity (Calculation) Part 11:31
Interest Rate Parity (Calculation) Part 21:10
Interest Rate Parity (Solved Example)1:32
Currency Forwards and Futures

Learning Objective0:39
Explore the currency derivatives trading system by detailing entities like trading members, plaiting members, and clients, and map their relationships; study various order types, including time and other conditions.
Entities in a Trading System1:19
Describe the roles of trading members, clearing members, professional clearing members, and participants in the exchange trading system, including unique member and user IDs, order reference, and risk management.
Types of Orders - Time Condition1:18
Types of Orders - Price Condition (Market Price)0:57
Types of Orders - Price Condition (Limit Price)0:55
Types of Orders - Price Condition (Stop Loss)1:06
Types of Orders - Other Condition0:51
Entities and Order Conditions - Quiz

Learning Objective1:06
Clearing and Settlement1:45
Clearing Entities1:08
Explore currency derivatives clearing and settlement, detailing clearing members, leading banks, and a designated clearing bank for fund settlement, with emphasis on clearing, settlement, and risk management.
Clearing Mechanism3:05
Explains how clearing mechanisms, by the Clearing Corporation, compute open positions for clearing and trading members by summing proprietary and client positions across days to determine settlement.
Settlement0:47
Settlement Mechanism (Mark to Market Settlement)4:34
Settlement Mechanism (Final Settlement)0:47
Examine final settlement in futures through finderer's settlement, where positions are marked to the final settlement price and cash-settled. Note risk management measures and mark-to-market on expiry.
Margin Requirements1:38
Clearing, Settlement and Risk Management - Quiz

Learning Objective1:01
Explore currency derivatives, futures, and forwards concepts by revisiting market participants, hedging, speculators, arbitragers, and spread trading, while examining limitations of currency futures for hedges.
Market Participants in Derivatives3:11
Use of Currency Futures by Hedgers1:47
Hedgers use futures to manage foreign currency risk by taking positions and comparing payoffs of combined versus standalone futures transactions, illustrated by an exporter hedging a euro receivable.
Combined position of futures and underlying export trade remittance4:01
Use of Currency Futures by Speculators1:35
Use of Currency Futures by Arbitrageurs2:31
Triangular Arbitrage2:19
Identify and exploit price differences among three currencies in the forex market using a triangular arbitrage sequence, and understand why profits are rare due to costs and price movement risk.
Spread Trading using Currency Futures1:07
Spread Trading using Currency Futures (Example)1:14
Limitation of Currency Futures for Hedgers1:31
Trading Strategies using Currency Futures - Quiz

Learning Objective1:02
Concept of Options2:12
Terminology related to Options2:43
Learn key option trading terms such as call and put options, strike price, expiration date, time to maturity, option buyer and seller, and option premium, illustrated with a house example.
Real life example of Put Option0:48
Difference Between Futures and Options1:09
Styles of Options0:32
Moneyness of Option1:56
Basics of Option Pricing1:11
Explore how option prices respond to spot price, strike price, interest rate differential between the base and gold currency, volatility, and time to expiration, affecting option premiums.
Option Value1:19
Breaks down option value into intrinsic value and time value, defined as max(0, spot minus strike) for calls and max(0, strike minus spot) for puts, with time expiration boosting value.
Option Greeks1:33
Option Pay offs1:42
Explore option payoffs, showing buyers have limited downside and unlimited upside while sellers face unlimited downside and limited upside, with non-linear long option payoffs vs linear futures.
Option Strategies - Long Call Option1:58
Option Strategies - Short Call Option1:39
Option Strategies - Long Put Option1:21
Option Strategies - Short Put Option1:45
Currency Options and Trading Strategies - Quiz

Requirements

This course assumes no prior knowledge and the only thing required is the will to learn

Description

The foreign exchange or Forex market is the largest financial market in the world. It is even larger than the stock market, with a daily trade volume of $5.1 trillion, vs $84 billion for equities worldwide.

Traders and Businessman all around the world use currency futures and options to manage their currency risk and even make huge profits. With this course I will help you to become a part of this massive system and profit from it.

Money is a such a crucial and integrated part of everyone's life worldwide, yet it is a shame that people know so little about it. But not anymore !!!

This course will be your stepping stone to a life of financial independence. It will spark an interest and you will find new respect for that money in your hand.

People preparing for NISM - Series I - Currency Derivative Exam and NISM - Series XIII - Common Derivative Exam will find this course extremely helpful as the content of this course is in accordance to the syllabus prescribed by NISM itself.

So if you are planning to sit for any of these exam than this course is highly recommended for you. No need to read large books, practice loads of questions and waste your precious time. All you got to do is take this course and you are all set for the exam. I can promise you that after taking this course you will be able to score really well. Not bad for just a few hours of preparation !!!

There are quizzes at the end of every section to help enforce what you have learnt.

After taking this course you will be able to answer :

· Which currency is know as the vehicle currency of the world and why ?

· What are currency derivatives ?

· What are futures and options ?

· How Hedgers use currency futures to manage their Forex risk ?

· What is triangular arbitrage ?

· How is Mark to Market settlement done ?

· What are option Greeks?

· How can you have a trading position with limited risk but unlimited potential of return

If you don't know the answer to even one of these questions, then this course is for you !

You have arrived to the right place and this course will form the basis for your financial literacy.

It can take a lifetime to be a master at anything but this short course is designed to cut down rubbish and give you everything you need straight away. I aim to consistently upload to this course and improve to give best possible experience.

Don’t be the one to get left behind !

What will you learn

· What is Forex ?

· Exchange Rate Arithmetic (Cross Rate)

· What are financial derivatives and their types ?

· What are currency futures ?

· Interest Rate Parity

· Trading Strategies using currency futures ?

· What are currency options ?

· Trading Strategies using currency options ?

· Peculiarities of Forex trading

What else will you get

· A deep understanding of how the largest financial instrument in the world work

· A friendly, informal community of traders to support you every step of your leaning

· Quiz at end of every section to reinforce and what you have learnt

· Access to new content as soon as it is uploaded

· Personal contact and support from me - 'Aditya'

· Life time access to course materials

What are the requirements

· Absolutely nothing !!! (We will start from the very basic and in the end you will feel extremely confident about currency derivatives.)

Who is the target audience

· Anyone who wants to start a new career in the field of finance.

· Anyone who wants to learn about the largest financial instrument in the world - Forex

· Anyone preparing for NISM - Series I - Currency Derivative Exam

· Anyone preparing for NISM - Series XIII - Common Derivative Exam

· Anyone who seeks financial independence

Looking forward to helping you on your journey.

"Aditya Bakshi"

Who this course is for:

Anyone who is preparing for NISM - Series - I : Currency Derivatives Certification Examination
Anyone who is preparing for NISM - Series - XIII : Common Derivatives Certification Examination
Anyone who wants to learn about Foreign Exchange or more specifically Currency Derivatives

Currency Derivative & Forex (NISM Certification)

What you'll learn

Explore related topics

Course content

Introduction1 lecture • 2min

Introduction to Currency Market21 lectures • 26min

Currency Derivatives5 lectures • 8min

Currency Forwards and Futures12 lectures • 19min

Entities and Order Conditions7 lectures • 7min

Clearing, Settlement and Risk Management8 lectures • 15min

Trading Strategies using Currency Futures10 lectures • 20min

Currency Options and Trading Strategies15 lectures • 23min

Requirements

Description

Who this course is for: