
Learn the fundamentals of foreign exchange and exchange rate arithmetic, including currency pairs, direct and indirect quotes, and key derivatives such as forwards, futures, options, and swaps.
Understand how cross-border movement of commodities, services, and capital drives exchange rates and currency conversion. See how exporters and importers convert dollars, euros, and rupees for international trades and banking.
Explore foreign exchange and how currencies are traded at an agreed price, driven by the exchange rate. See examples like USD to INR and EUR to USD.
The lecture identifies forex participants - export companies, commercial banks, investment funds, central banks, and individuals - and explains foreign exchange management and central bank oversight of reserves and rates.
Explore the forex market’s global 24‑hour continuity across time zones from Tokyo to New York, with interbank trading 9 am–5 pm and Indian markets closed on weekends.
Learn how currency pairs express the base currency's worth in terms of the counter currency, with examples such as USD/INR and EUR/USD, and how real-time prices reflect appreciation or depreciation.
Define currency appreciation as when one currency can buy more of another, and depreciation as when it buys less, with simple dollar–rupee examples to illustrate the concept.
Explore forex transaction types by settlement date: cash (same-day), spot (two days), and forward contracts (pre-set future delivery), with holiday adjustments.
Explore direct quote and indirect quote in exchange rate arithmetic, learn their inverse relationship, and practice India-based examples.
Explain how banks quote bid and ask rates in forex, and how the bid-ask spread reflects market liquidity and profits from currency transactions.
This course is primarily intended as an introduction to the theoretical and practical aspects of Exchange Rate Arithmetic for anyone interested in how the exchange rates work and other intricacies involved with Exchange Rates.
This course is ideal for the students taking various examinations of the Institute of Bankers.
With many case studies included in this course which will prove useful to many who are actually engaged in this interesting branch of International Banking.
If you are new to this field then this course is a perfect starting point.
The course is taught in simplest language with example given at each and every point.
Topics Covered in this course-
What is Foreign Exchange?
Different FOREX participants.
Currency Pairs.
Appreciation and Depreciation of currency.
Types of FOREX transactions.
Direct/ Indirect Quote.
Bid/ Ask Rate.
Two Way Quotation Method.
Cross Currency rate mechanism.
Discounts and Premiums.
Factors determining Exchange rates.
Various Foreign Currency accounts.
What are Derivatives?
Types of Derivatives- Forward Contracts, Futures, Options, Currency Swaps.
Case Studies on Exchange Rate Arithmetic, Futures, Options.