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2. Technical Analysis

14 Chapters

4. Commodities

21 Chapters

5. Currencies

10 Chapters
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Currencies

Module Overview

Forex market is the largest market in the world, with average volumes exceeding $5 trillion a day. It is a highly liquid market, wherein one currency is bought by selling another currency either at the current price or at a predetermined price. Forex market is an extremely important market in today’s world, because it facilitates the functioning of the global trade. In this module, we will talk about the various aspects of the Forex market. We will introduce the Forex market and talk about its evolution. We will talk about things such as various currencies that are traded around the world, various instruments that are available to trade, factors that impact the Forex market, types of exchange rates, and about the Indian FX market. This module will give the reader a thorough understanding of how the global and the Indian Forex market works and how to trade in the Forex markets.

Discussions

Introduction to India’s FOREX Market

Meenakshi (October 18th, 2019)

Nice article with forward exchange rate calculation.

Introduction to India’s FOREX Market

Swoorup Singh (October 18th, 2019)

Can I beat the inflation, if I will invest in USA market for 10 years, and send that maturity amount back to India?

Introduction to India’s FOREX Market

Bikash (October 18th, 2019)

As we know, trading or investing in the currency market is a different kind of art.What factors one should consider before taking a position…

Introduction to India’s FOREX Market

Vicky (October 18th, 2019)

I learn new information from your article, very useful content

Chapters

1. Introduction to Foreign Exchange Market

1 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 Market

7 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 Market

14 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 Data

15 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 Rates

5 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 Majors

10 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 Currencies

6 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 Market

8 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 Futures

9 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.

Discussions

Introduction to India’s FOREX Market

Meenakshi (October 18th, 2019)

Nice article with forward exchange rate calculation.

Introduction to India’s FOREX Market

Swoorup Singh (October 18th, 2019)

Can I beat the inflation, if I will invest in USA market for 10 years, and send that maturity amount back to India?

Introduction to India’s FOREX Market

Bikash (October 18th, 2019)

As we know, trading or investing in the currency market is a different kind of art.What factors one should consider before taking a position…

Introduction to India’s FOREX Market

Vicky (October 18th, 2019)

I learn new information from your article, very useful content