Foreign Exchange Market (FOREX)

EENI Business School & HA University


Syllabus of the Subject: Foreign Exchange Market (FOREX). Currency Trading. Options.

  1. Introduction to the Foreign Exchange Market (FOREX)
  2. Global Financial Crisis
  3. Role of the 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 the 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: the balance of payments as a tool for credit risk analysis of a market

The objectives of the Subject “Foreign Exchange Market (FOREX)” are:

  1. To analyse the fundamentals of the Foreign Exchange Markets, understand their functioning and examine the agents operating in these markets
  2. To know the various methods of managing exchange risk
  3. To examine in detail the Forward exchange contracts and currency options
The Subject (e-learning) “Foreign Exchange Market (FOREX)” is part of the following Higher Education Programs (Bachelors, Masters, Doctorates) taught by EENI Business School & HA University:
  1. Master's Degree (e-learning): International Business, Foreign Trade and Marketing
  2. Postgraduate Diploma in International Trade (e-learning)
  3. Course Payment methods
  4. Bachelor's Degree in International Trade (e-learning)

Student (EENI Business School & HA University)

Languages of study Higher Education in English or Post-secondary Education in French Financement Higher Education in Spanish Financiación Tertiary Education in Portuguese Financiamento

Area of Knowledge: Foreign trade.

Sample of the Subject: Foreign Exchange Market (FOREX)

Finance of International Trade - International bonds

Description of the Subject- Foreign Exchange Market (FOREX)

The Foreign Exchange (FOREX) market is by far the largest 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, 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 the international monetary and financial cooperation and serves as a Bank for the central banks.

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

Foreign Exchange Market (FOREX)

European Central Bank (ECB)

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