Forex Derivatives: Forwards, Futures, Options & Swaps

Learn to Manage Forex Risk with Forwards, Options, Futures, and Swaps for Businesses and Professionals

What you'll learn

Understand the fundamentals of forex derivatives and their role in managing currency risk.

Learn how to effectively use forwards, futures, options, and swaps for hedging corporate balance sheet risks.

Identify and quantify currency exposures in financial statements and implement appropriate hedging strategies.

Develop a risk management framework to protect corporate profitability from forex volatility.

Requirements

No prior experience in forex or derivatives is required.

Basic understanding of finance and corporate financial statements is helpful but not mandatory.

A willingness to learn practical techniques for managing currency risk.

Description

This course provides a comprehensive overview of forex derivatives, focusing on essential tools like forwards, options, futures, and swaps used to hedge currency risk. It’s designed for students, professionals, bankers, and corporate finance experts who want to understand how to manage forex risk in dynamic global markets.In this course, you will learn:Forwards Contracts: Understand how forward contracts are used to lock in exchange rates for future transactions, helping businesses mitigate risks related to currency fluctuations.Options Contracts: Discover how currency options (call and put options) offer flexibility in hedging, providing the right (but not the obligation) to buy or sell currency at a specified price. Learn how to apply options to manage both short-term and long-term forex exposure.Swap Contracts: Explore the mechanics of currency swaps, a tool used by businesses to exchange cash flows in different currencies. Learn how swaps are particularly useful for managing long-term currency risks and interest rate fluctuations.Real-World Application: Gain practical insights through case studies, demonstrating how businesses and financial institutions utilize these tools in real-world scenarios to manage their exposure to currency risk.By the end of this course, you will have a clear understanding of how these forex derivatives work and how to use them effectively in hedging strategies. You’ll also learn how to evaluate the risks and benefits of each tool, making you capable of applying these techniques to corporate balance sheets, financial management, and risk mitigation strategies. This course is perfect for anyone looking to gain expertise in forex risk management and financial strategies related to currency fluctuations.

Overview

Section 1: Introduction to Forex and Currency Risk

Lecture 1 Basics of Forex and Currency Risks in a Corporate Balance Sheet

Section 2: Forward Contracts in Forex Hedging

Lecture 2 Forward Contracts

Section 3: Option contracts in Forex Hedging

Lecture 3 Option Contracts in Forex Hedging

Section 4: Swap Contracts in Forex Hedging

Lecture 4 Swap Contracts in Forex Hedging

Section 5: Additional Learning: Introduction to Forex

Lecture 5 Basics

Students and professionals aiming to build a career in treasury, finance, or risk management.,Bankers and financial advisors seeking to advise clients on forex risk management.,Entrepreneurs and SMEs involved in global trade looking to safeguard their balance sheets from currency volatility,Corporate finance professionals managing international exposure and currency risks.