Join Mailing List

For latest news and information about Treasury and Financial Markets, enter your details below:

Money Markets & Foreign Exchange

Print Preview Send to a Friend Share

An Introduction to Money Markets & Foreign Exchange, (One Day)

Enquire or book this course 

This workshop will explain how money market & foreign exchange products work and what they are used for. The course will cover the following:

  1. The role of Treasury in managing FX and liquidity risk
  2. Money market instruments, the main products and why they are used
  3. Foreign exchange, spot, forward, swap and option transactions, how they work and what they are used for

There will be a mixture of presentation and case study material.

The workshop is designed for up to ten staff who are new, or have limited exposure to financial markets and wish to build on their understanding of financial instruments.

Below is a summary of the workshop content. The content of the day has been placed in a logical sequence and addresses the main products, pricing, and application.


Interest rates & discount factors

Market terminology

  • Selected market terminology and what it means

The Treasury

  • Explanation of the role of the treasury
  • The main risks that are managed

Basic financial mathematics

  • Discount factors, present / future value

Money market instruments

Money markets

  • Loans and deposits
  • Certificates of deposit
  • Commercial paper
  • Asset backed commercial paper
  • Treasury bills
  • Repo
  • Funding & liquidity

Interest rate exposure

  • What it is
  • How it is quantified
  • How it affects customers

Hedging short term interest rate exposure

  • Forward rate agreements
  • Hedging application
  • Futures
  • Use in hedging by financial institutions


Foreign exchange

Foreign exchange

  • Identifying & quantifying FX exposure
  • How & why customers get FX risk
  • Hedging policies
  • Spot exchange rates
  • Forward rates & their calculation
  • How customers can use forward transactions
  • Agreeing outright forward prices
  • FX swaps
  • How FX swaps can be used

Currency swaps

  • Fixed / fixed
  • Fixed / floating
  • Basis swaps
  • Practical application

Currency options

  • Option terminology
  • How FX options work
  • Simple option strategies for customers
  • Zero cost and reduced premium strategies

End of workshop & review

Related Documents

Free to ViewForeign Exchange Options 100% relevant

Registration RequiredMarket Guides > Spot & forward foreign exchange 66% relevant

12th October 2009

Introduction Foreign exchange is defined as "a claim to a foreign currency payable abroad and may be funds held, bills or cheques". A foreign exchange transaction is, "a contract agreed today between two parties to trade an agreed amount of one currency for an agreed amount of another currency on a future date". When you travel you may be familiar with buying currency at the airport. Because the sums involved are small and paper money is exchanged the differences between buying and selling prices can be wide. You may also be unfortunate enough to pay a dealing fee. Banks, corporates and speculators deal in the professional market. Trades are transacted across electronic platforms and each trade can run into millions of dollars. As a consequence dealing spreads are very narrow and the money is exchanged by credits and debits to bank accounts. Let's find out about the spot and forward markets and the risks involved.

Free to ViewShort courses>Foreign exchange & Non deliverable forwards 66% relevant

Registration Requiredelearning > Spot & forward foreign exchange 66% relevant

Learn about the following: How the spot market works. What the spot price is. What happens when you do a deal. How the forward rate is calculated. How dealers make money. Why customers are important.

Registration Requiredelearning > Foreign exchange swaps 66% relevant

Learn the following: How foreign exchange swaps work. The calculations involved. What foreign exchange swaps can be used for.

Free to ViewTreasury Consulting > Corporate foreign exchange risk 66% relevant

6th December 2009

Unexpected gains and losses from foreign exchange risk can complicate running a company. At the moment you may be selling off currency on an ad-hoc basis and it's the first time you have considered managing the exposure what can you do? Here are 11 points that may help.