Currency Forwards

Duration: 1/2 Day

Full Fee: €250

Network Members Fee: €180

Programme overview

Learning Outcomes

At the end of this course participants will be able to

  • Describe how foreign exchange markets work
  • Describe a forward foreign exchange contract (a currency forward)
  • Explain why forward rates are different to spot rates
  • Discuss how currency forwards are valued and how they impact the NAV
  • Outline how currency forwards can be used to take a positional view on a currency
  • Outline how currency forwards can be used to hedge currency risk on a portfolio of investments or on a currency share class
  • Outline briefly the alternatives to using currency forwards

Who should attend?

Participants with little or no experience of forwards. Fund professionals with some experience who would like a
greater understanding of forwards.

Course Content

  • Foreign exchange markets
    • Spot trades & forward trades
    • Spot exchange rates
    • Interest rates & forward exchange rates
    • Trade confirmation
    • OTC markets
  • Valuation
    • Sources for forward rates
    • Forward valuation movements & impact on the NAV
  • Uses of forward contracts
    • Positional
    • Hedge of investments
    • Hedge of share classes
  • Alternatives to forwards
    • Futures
    • Swaps
    • Options

Trainer Profile