FX Trading Strategies

This unique two-day course will offer delegates an thorough macro-approach to trading the foreign exchange markets. Taking an in-depth analysis of all aspects of FX trading including different instruments, valuation, FX regions, fundamental and quantitative techniques, this will be of great value to anyone involved in global FX markets.

Available for in-house delivery. Call +44 (0)1483 573150.
Duration: Two days (9.00am to 5.00pm)
Location: Apex City of London Hotel – London, UK
Trainer: Luis Costa
Please contact us for a quotation

Course Outline

FX as an Asset Class

+ Reducing volatility in a bond/equity portfolio
+ Implied yields on NDFs and local bonds (EM as a case study)
+ Evaluating Sharpe and Sortino Ratios on FX crosses
+ Measures of valuation
o Short-term: peer to peer; correlation analysis
o Long term: REER, NEER analysis

EM FX in the Global Context

+ Interventions in difficult time (spot vs derivatives)
+ Currency Wars (China vs US; sterilisation costs)
+ FX Reserves: The Ultimate Shield
o FX Reserves coverage metrics
o How much improvement have we seen in FX reserves coverage in EM?

Carry Trades

+ Measuring performance
+ When carry trades do not work / ideal carry trade environment

Fundamentals in FX Quant Analysis

+ Betas in FX Investing
+ Multiple linear regressions

Local Markets Investing

+ Where FX meets rates – forced redemptions in EM

FX derivatives – Fundamentals

+ FX Swaps
+ Cross-currency swaps
+ FX basis as a 'crisis thermometer')
+ NDFs : the offshore markets

Macro and FX investing

+ Important measures
+ What is hot on each EM region: variable to look for
+ A general framework