Some basic concepts; Essential financial arithmetic; Overview of money market instruments; Deposits and coupon-bearing instruments; Discount instruments; Forward interest rates, FRAs and introduction to futures; Spot foreign exchange; Forward outrights and swaps; Hedging swaps with deposits, FRAs and futures, covered interest arbitrage & creating synthetic FRAs; Managing the spot risk on a forward FX position; Currency relationships; Bank risk management; Corporate risk management; Answers to the exercises; Appendices
Floating rates, central-bank intervention, derivatives trading and the very high volumes of speculative and round-the-clock trading are just a few of the facets of the foreign exchange marketplace that make it a highly dynamic and volatile arena. This book addresses the practical applications of foreign currency trading and money market trading and provides comprehensive coverage of these markets.
- What the instruments are
- How and why they are used - by both bank dealers and corporate end-users
- How the different instruments are linked one to another
- How you price them
- Structure of the market, EMU etc
- The range of risks arising from dealings in these instruments that affect banks and corporates
- How these risks are measured and managed
- Brings together a range of practical, relevant material on Foreign Exchange and money market trading
- Focuses on trading situations as well as on calculations
- International in coverage, the concepts and methods covered are not restricted to any country or institution
Foreign Exchange traders in FX departments of commercial banks; Security firms, insurance companies, and other Finance organisations; Corporate Treasurers and Foreign Exchange Traders; Portfolio Managers
- No. of pages:
- © Butterworth-Heinemann 2002
- 22nd February 2002
- eBook ISBN:
- Hardcover ISBN:
Bob Steiner is Managing Director of Markets International Ltd, an independent company specializing in training in a range of areas related to the international financial markets, treasury and banking. He has also written the best selling books: Mastering Financial Calculations, Mastering Repo Markets, and Key Market Concepts. Bob was previously senior consultant with HSBC, where he worked in London and New York in the dealing area as consultant to major US and European companies on treasury management. He has also been treasurer and fund manager of H P Bulmer Holdings plc and English and American Insurance Group plc, both active in currency and interest rate management. He has also worked in the overseas Department of the Bank of England, and with the European Commission in Brussels. He holds an honours degree in mathematics from Cambridge University, and has followed further studies in economics with London University. He is a member of the ACI and the Association of Corporate Treasurers.
Managing Director of Markets International Ltd.