This hands-on training provides you with a solid foundation for hedging currency risk with Derivatives

Currency Derivatives Training Overview

This hands-on training provides you with a solid foundation for hedging currency risk with Derivatives in the Asian markets, trading Derivatives for portfolio optimization and discuss the technicalities involved when selling or buying derivatives to/from third parties.

The training starts with a short introduction to the FX markets globally and here in Asia, looking at currency controls, historical movements under moratoriums and the impact of countries defaulting on their debt.

From here the standard hedging tools will be discussed, such as FX Forwards, FX Swaps and Cross Currency Swaps. Pricing is discussed for both On-shore and Off-Shore markets. Followed by currency options (calls & puts) and the more sophisticated hedging strategies, such as Collars, Digitals, Reverse Knock-In Options, Window Knock-in Options etc.

You will have the opportunity to test the different hedging strategies within a Monte Carlo framework and understand the nuances of each strategy. A quick side step is made to discuss the commercial derivative pricing tools currently available.

The training is finalized by a session of how your counterparts, in the hedging transaction, manage the underlying risk and how margins are typically priced in. The trainer complements all strategies with real life examples and provide a solid framework based on his own experience in the markets and explain the issues companies have faced when hedging their currency risk. The training aims at 50% / 50% split between exercises and training materials.

The training is also complemented with a list of research, reference materials and Excel sheets to provide you with a solid understanding of the technicalities involved when pricing, hedging and trading Currency Derivatives. You are also guided through the VBA code behind all the Excel sheets if VBA code is present.

No coding experience is required!