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Welcome to the course International Finance – A Comprehensive Study.
In this course, you will learn about the International Finance and its related aspects covering
a) What are Forex Rates?
b) What is Bid / Ask / Swap / Spread?
c) How to compute Depreciation / Appreciation of Currencies?
d) Why Foreign Currency Rates Fluctuates?
e) What are Foreign Exchange Risks?
f) How to hedge Foreign Currency Transactions through Forward Contracts, Future Contracts and Option Contracts.
This course is structured keeping Professional course students in mind like CA / CPA / CFA / CMA / MBA Finance, etc.
This course will equip you for approaching those professional examinations. This course is presented in simple language with examples. This course has video lectures (with writings on Black / Green Board / Note book, etc). You would feel you are attending a real class.
This course is structured in self paced learning style. You would require good internet connection for interruption free learning process. You have to go through the videos leisurely to grab the concepts with clarity.
This course consolidates my other courses on Forex namely
• Forex Basics
• Forex Rates – Why it fluctuates?
• Learn Forex Risk: Understand Forex Decision Making
By taking this course, you need not take the above course.
Take this course to gain strong hold on International Finance.
What are the requirements?
• Students should have basic knowledge on Accounting and Financial Management
What am I going to get from this course?
• Over 37 lectures and 2.5 hours of content!
• Understand Basics of International Finance
• Understand Technical Terms used in Forex Transactions
• Understand Forex Risks
• Understand Forex Hedging Mechanism
• Understand International Capital Budgeting Methods
What is the target audience?
• This coursed is structured keeping Professional course students like CA / CPA /CMA / CFA / MBA (Finance) in mind.
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This is the most important thing to note on how to trade Forex for beginners.
The purpose of a currency swap is to allow sums of a specific currency to be designated in a different currency without the risk of loss that’s normally attached to exchanges.
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If you’re new to trading currencies on the foreign exchange market (forex), you might be wondering what a “currency swap” is. Well, the first step towards to dominating trading and turning a profit is to understand the mechanics, including currency swaps. To learn more about currency swaps and other financial instruments used in forex trading, keep reading.
Currency Swap: the Basics
When speaking in the context of forex trading, a currency swap occurs when two parties exchange currencies for a specified length of time, only to reverse the transaction later. The purpose of a currency swap is to allow sums of a specific currency to be designated in a different currency without the risk of loss that’s normally attached to exchanges. Large companies often use this technique to maintain and manage funds of varying currencies.
Note: currency swap is the most common type of forward instrument used on forex trading. Whether you’re a newcomer to forex trading or a seasoned investor, you’ll need to learn the nuances of currency swap to succeed.
Legs of Forex Swap
Swaps performed on forex have two “legs:” a spot transaction and forward transaction. When a swap occurs, these two legs are executed for the same currency amount, allowing them to offset themselves. Because forex trading occurs when two or more companies have a currency that the other party needs, it mitigates the risk associated with trading. An alternative to this trading technique is a forward-forward, in which both transactions are scheduled and agreed upon for forward dates.
Other Forex Financial Instruments
Of course, currency swap isn’t the only financial instrument used in forex trading. Others may include the following:
• Spot – 2-day transaction that’s opposite of future contracts. In addition to currency swaps, spot trading is one of the most common types of trading performed on forex.
• Forward – in a forward trade, money does not exchange between the parties until a future date has been agreed upon.
• Swap – see above.
• Futures – standardized forward contracts that are traded for this very purpose. Most future contracts have a 3-month length on average and are typically inclusive of interest.
• Option – last but not least, an option is when the owner has a right to exchange money as one currency into a different currency at an agreed rate on an agreed date.
Learn more about FOREX TRADING:
Please watch: “Forex Trading Success – 5 Tips to Become a Better Forex Trader”
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Foreign exchange swap, forex swap, or FX swap =
s a simultaneous purchase and sale of identical amounts of one currency for another with two different value dates.
difference between the forward rate and the spot rate. These points are computed using an economic concept called Interest Rate Parity. Swap Points = Forward Price – Spot Price