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Interest Rates & FX Derivatives (Risk & Hedges)

Course Overview

The “Risks & Hedges” module articulates the need and importance of derivatives and how to assess and employ appropriate type to manage the different risks involved in financial transactions.

Course Objectives

  • participants will be exposed to the need, uses, importance, pricing, accounting, hedging and management of different risks involved in foreign exchange and interest rate derivatives
  • participants will also learn fundamentals of interest rate and foreign exchange products, whilst understanding or recognising risks inherent in these products and how to manage them through employment of derivatives as hedging tools

Duration – 5 Days


The Financial Markets
Overview & Attributes

The Money Market
Interest Rate Bearing vs Discount Instrument

Treasury bills
Overview, Quotation, Holding Period Yield

Money Market Derivatives
Forward - Forward, Forward Rates

FX Market
Overview, Foreign Currency Money Market, Day Basis Convention, Factors Affecting FX Rates, Concepts etc.

FX Products, Infrastructure & Risks
Spot, Crosses, Forwards, NIFEX, NAFEX, FX Risks, Overview (Typology)

FX Derivatives
Deliverable and Non-Deliverable Forwards, FX Swaps, Cross Currency Interest Rate Swaps, Options - Call & Put

Risks Management - Case Studies