Foreign Exchange Market (FOREX)

EENI- School of International Business

Sub-subject Sub-subject: Foreign Exchange Market (FOREX). Currency trading. Options. Syllabus:

  1. Introduction to the Foreign Exchange Market (FOREX).
  2. Financial crisis
  3. Bank for International Settlements.
  4. European Central Bank. The Euro.
  5. Tobin tax.
  6. Currency trading.
  7. Players: Central banks, companies, brokers, hedge funds, investors, and speculators.
  8. Currency exchange rates.
  9. Methods of managing exchange risk
  10. Types of coverage
  11. Exchange risk insurance
  12. Forward exchange contracts and currency options. Call/Put Options.
  13. Spot Market and Forward Market
  14. Vulnerability analysis.
  15. Case Study: balance of payments as a tool for credit risk analysis of a market.

Objectives of the sub-subject - FOREX (Foreign Exchange Market):

  1. To analyse the fundamentals of Foreign Exchange Markets, understand their functioning and examine the agents operating in these markets.
  2. We will also look at various methods of managing exchange risk.
  3. Forward exchange contracts and currency options will be examined in detail.


Sub-subject “Foreign Exchange Market (FOREX)” is studied...
  1. Master in Foreign Trade and International Marketing
  2. Professional Master's Program in International Business
  3. Postgraduate Diploma in International Trade (e-learning)
  4. Course Payment methods

Languages of study: English or French Financement Spanish Financiacion Portuguese Financiamento

Area of Knowledge: Foreign trade.

Sample of the Sub-subject: Foreign Exchange Market (FOREX):

Finance of international trade - International bonds

Description Sub-Subject Description (Foreign Exchange Market FOREX):

The Foreign Exchange (FOREX) market is by far the biggest market in the World.

The 1.5 trillion dollars average daily turnover dwarfs the daily turnover in all the World's stock and bond markets combined.

The New York Stock Exchange has a daily trading volume of approximately USD 30 billion. One trillion dollars (USD 1,000,000,000,000) changes hands every day on global Foreign Exchange Markets. 80% of this trading is of a speculative nature, buying and selling money for profit's sake.

Investing in foreign exchange remains mainly a domain of the big professional players in the market such as hedge funds, banks, and brokers.

The currency exchange market is a true 24-hour market, five days a week. There are dealers in every major time zone. The largest dealing centres are London (50% of the market), followed by New York, Tokyo, Zurich, Frankfurt, Hong Kong, and Singapore, Paris, and Sydney.

  1. The first session, which is the Asian session, begins on Sunday evening at approximately 7:00 p.m. EST (Sydney).
  2. The second session, which is the London session, starts at approximately 2:00 a.m. EST.
  3. The third and final session, which is the New York session, begins at approximately 7:00 a.m. EST and ends at 5:00 p.m. EST.

The Bank for International Settlements (BIS) is an international organisation which fosters international monetary and financial cooperation and serves as a Bank for central banks.

The currency exchange market determines currency exchange rates. A currency exchange rate is always quoted for a currency pair using ISO code abbreviations.

Foreign Exchange Market (FOREX)

U-EENI University