Foreign Exchange - Level 1


This course introduces the participants to foreign exchange as the importance of foreign exchange markets has grown with increased global economic activity, trade and investment, and with technology that makes real-time exchange of information and trading possible. The course will cover foreign exchange, its terminology, spot and forward rates, and develops a basic understanding of trading in foreign exchange markets.

Course Details

Upon successful completion of this course, participants will be able to:

  • Describe the principal risks in spot and forward FX transactions and the relationship between the forward rates and interest rates
  • Explain how the out/right market function
  • Describe how to hedge against rising/declining interest rates
  • Judge how to maximise profit potential & minimise risk potential and distinguish between spot rates and foreword rates
  • Experiment the best way of hedging long/short position, describe how to manage cash flow by linking the interest rates with FX market
  • Illustrate how to minimise the interest rate risk and FX risk, explain the relationship between the outright forward rate and the forward points and develop methods for managing synthetic foreign currency assets and liabilities
  • Calculate FX profit & loss, the average FX position, cross rates, forward FX rate from a spot FX rate and interest rate
  • Calculate an outright forward FX rate from a spot rate and the forward points and vice versa, the swap points, the covered interest in arbitrage, anti-spot outright rates, the price for hedging value today/tomorrow swap position,  the broken days swap rates and the forward cross rates
  • Introduction to FX
  • Spot/Forward Market
  • Reciprocal rate
  • FX Swap
  • Outright Rate
  • Forward-Forward Swap
  • Forward Cross Rate

New entrants to the treasury department, junior dealers; foreign exchange traders; corporate desk dealers; treasury operations staff ; middle office staff; auditors; compliance officers; risk managers; system developers; other business units where foreign exchange market is an important element in their work; finance officers in corporations, import and export, and insurance companies.

Participants are expected to have a considerable background in fundamental mathematics and completed basic courses on Foreign Exchange.

This course consists of lectures, discussions, in-class exercises and multiple-choice questions. Participants are also expected to complete an additional 5 hours of self-study.

Note: This course is examinable

Duration: 3 Days (5 hours per day) with the exam on the final day

Date:       13-15 Jun

Lecturers: BIBF Faculty

Fees: Member Organisations

  • GCC Nationals: Covered by Levy
  • Other Nationalities: BHD 75

Fees: Non-Member Organisations

  • All Nationalities: BHD 300


A calculator is required for this course.

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