Exploring the Foreign Exchange Market
What you'll learn
- The students will understand the concepts of domestic and foreign currency and how they apply in different contexts.
- They will learn n how foreign trade transactions are conducted and whether businesses must pay in the exporter’s domestic currency.
- The students will explore the structure of the forex market, including its participants, trading mechanisms, and operating days.
- They will annalyze the role of major financial centers and whether they represent the entire forex market.
- The students will understand the differentiate between spot and forward markets, including settlement periods and pricing mechanisms.
- They will learn about the most frequently traded currencies and the extent to which forex transactions are concentrated in a few currencies.
- The students will gain insights into trading volume patterns, including days with higher market activity and the impact of online trading.
Requirements
- Basic understanding of economic principles such as supply and demand, inflation and interest rates
Description
The foreign exchange (forex) market is the backbone of international trade and finance, facilitating the exchange of currencies and enabling global economic activity. This course, Exploring the Foreign Exchange Market, is designed to provide a detailed understanding of the structure, functioning, and key participants of the forex market. Whether you are a student, professional, or enthusiast, this course will equip you with the knowledge to navigate the complexities of currency trading and its global implications.
In this course, we will begin by defining fundamental concepts such as domestic currency, foreign currency, and how these terms change when individuals or businesses operate across borders. We will explore how foreign trade is conducted, the role of trade agreements in determining payment currencies, and whether businesses are bound to use the exporter’s domestic currency.
The course will then delve into the forex market itself, examining its online and offline operations, trading hours, and the major participants, including banks, corporations, governments, and individual traders. You will learn why currencies are traded in pairs, the most frequently traded currencies, and whether forex trading is confined to a few dominant currencies. We will also discuss the role of major financial centers like London, New York, Tokyo, and Hong Kong in shaping the global forex market.
A key focus of the course will be on the differences between the spot and forward markets, including the concept of T+2 settlement in the spot market and the delivery timelines in the forward market. You will gain insights into whether most forex transactions occur in the spot or forward market and the factors influencing trading volumes on specific days.
By the end of this course, you will have a comprehensive understanding of how the forex market operates, and its significance in global finance.
Who this course is for:
- Students and any individual who enjoys learning about various concepts of economics
Instructor
- 4.3 Instructor Rating
- 7,135 Reviews
- 211,801 Students
- 157 Courses
Parminder Singh has worked as a legal officer and branch manager with an insurance company owned by the government of India. Partner Puneet has also worked with a government department. Both of them took voluntary retirement and have started providing online education to students. They take pride in providing quality educational services and their aim is to ensure that the students are able to understand each and every question in an easy way. Their goal is to help the leaders of tomorrow learn to succeed today.