1. Introduction to Foreign Exchange Market1 Lessons
This chapters introduces the Forex market. It covers things such as various currencies that are traded around the world, currencies that are traded in India, how to read and interpret Forex rates, various types of participants in the Forex market, instruments that are available for trading, and factors that influence the trends in the Forex market. The purpose of this topic is to give a brief background of the Forex market.
2. Evolution of the Forex Market7 Lessons
This chapter talks in detail about how the Forex market has evolved over the course of last several centuries. We start with the earliest known system of exchange - the Barter system - and proceed all the way to today's digital era. The objective of this chapter is to introduce the reader with important milestones that have eventually shaped up the Forex market of today.
3. Factors that Drive the Forex Market14 Lessons
In this chapter, we shall study some of the major economic and fundamental factors that impact currencies. The objective is to enable the reader to understand the various facets that impact the Forex market of today.
4. Analysing Economic Data15 Lessons
In this chapter, we will discuss some of the major economic data that has a strong impact on the global Forex market. We will speak about how to analyse these economic reports in order to gauge their potential impact on currencies. Towards the end, we will also list some of the most important country-wise economic data as well as the key central bank meetings to keep a track of on a periodic basis.
5. Types of Exchange Rates5 Lessons
In this chapter, we will discuss about the two types of currency systems that are prevalent today: the fixed exchange rate system and the floating exchange rate system. We will also discuss about currency convertibility and how it can impact currencies. Finally, we will briefly speak about the Rupee in terms of the type of the currency system that it is under and its convertibility.
6. The Majors10 Lessons
In this chapter, we will talk about the seven Major currency pairs. These include EUR/USD, USD/JPY, GBP/USD, USD/CHF, AUD/USD, USD/CAD, and NZD/USD. We will talk about the factors that impact each of these currency pairs and towards the end of the chapter, we will also present a few charts that highlight some of the key correlations that exist among each of these pairs.
7. The Cross Currency Pairs (Foreign Pairs)6 Lessons
In the previous chapter, we spoke about the major currency pairs. In this chapter, we will speak about the cross currency pairs i.e. the pairs which does not involve the Dollar. We will talk about how cross currency rates are calculated as well as some of the key cross currencies that are traded around the world. Towards the end of the chapter, we will present a few real-world charts of cross currency pairs.
8. The BRICS Currencies6 Lessons
Now that we have covered the Majors and the Crosses, it is time to speak about the BRICS currencies, that is the currencies that belong to Brazil, Russia, India, China, and South Africa. In this chapter, we will talk about some of the key factors that impact the movements of these currencies against the Dollar. Towards the end, we will present a few charts showing some important correlations that these currencies share with other currencies/assets.
9. Introduction to India’s FOREX Market8 Lessons
Now that we have covered the global Forex market in detail. it is time to focus on the Indian Forex market. In this chapter, we will briefly speak about USD/INR and the three Rupee crosses that are traded in India. That said, the major theme of this chapter is to talk about two things. One is how the two-way quotes of the Rupee crosses are calculated. The other is to talk about how forward/futures rate is derived from the spot rate.
10. Currency Futures9 Lessons
In this chapter, we will talk about Currency Derivatives in India, with emphasis on Currency Futures. We will define how futures differ from forwards before proceeding to talk about the contract specifications of Currency Futures that are traded on Indian exchanges. Finally, we will speak about how to calculate profit/loss on currency futures positions as well as some examples relating to basic hedging and speculative strategies using Currency Futures.
11. Currency Options7 Lessons
In this chapter, we will turn our focus towards currency options that are traded on the Indian exchanges. We will talk about things such as basics of options, contracts specifications of options, option payoffs, and how they are different from futures.
12. Intermarket Analysis5 Lessons
Now that we have understood the fundamentals of the Currency markets and have also discussed about Currency Derivatives that are traded on the Indian exchanges, it is time to focus on intermarket, technical, and other aspects of currencies. In this chapter, we will exclusively focus on intermarket analysis i.e. how movements in bonds, commodities, and equities impact movements in currencies.
13. Technical Analysis of Currencies5 Lessons
In this chapter, we will show how to use Technical Analysis in analyzing currency trends. We will also see how to establish reward-to-risk ratio using charting patterns. For a robust understanding of Technical Analysis however, we suggest one to go through our Technical Analysis module. This chapter has been written with the assumption that the reader has a basic understanding of Technical Analysis.
14. Miscellaneous3 Lessons
This is a very brief chapter wherein we will talk about things such as Market timing (global and domestic), key trading hours (global and domestic), and list of Indian market holidays pertaining to the currency segment.