Currency Derivatives - A Beginners Module

Why should one take this course?

  • To understand the fundamentals of the currency market.
  • To understand the currency futures as a risk management tool.
  • To learn about the trading platform of the currency derivatives segment of a stock exchange.

Who will benefit from this course?

  • Students / Teachers / Analysts
  • Bankers / Corporate Executives
  • Employees of Export/Import Houses
  • Employees of Brokers and Sub-brokers
  • Anybody having interest in the Indian Securities Market

Test details

Duration : 120 minutes
No. of questions : 60
Maximum marks : 100, Passing marks : 50 (50%); There is negative marking for incorrect answers.
Certificate Validity : For successful candidates, certificates are valid for 5 years from the test date.

NSE's Examination Fees

Rs. 1,500/- (Rupees One Thousand Five Hundred only).

COURSE OUTLINE

DERIVATIVES AS A RISK MANAGEMENT TOOL
Concept of risk; Risk management; Types of traders in the derivatives markets.

CURRENCY MARKETS
Exchange rate; Fixed and floating exchange rate regime; Factors affecting exchange rates; Concept of quotes; Tick-size; Spreads; Spot transaction and forward transaction.

CURRENCY FUTURES
Forward contracts; Futures contracts; Pricing of futures contracts.

STRATEGIES USING CURRENCY FUTURES
Hedging, speculation and arbitrage in currency futures.

NSE's CURRENCY DERIVATIVES SEGMENT
Product definition; Trading underlying versus trading futures; Uses of currency futures at NSE.

TRADING, CLEARING, SETTLEMENT and RISK MANAGEMENT
Membership; Future contract specifications; Trading system; The trader workstation; Basis of trading; Client-Broker relationship in derivatives segment; Clearing entities; Position limits; Margins; Settlement of contracts.