Understanding the foreign exchange market

Key participants: FIIs, importers, exporters, and others

Factors influencing exchange rates (e.g., economic indicators, policies)

Evolution of India’s currency derivatives market

Overview of traded instruments: Currency options and futures

Comparison of OTC vs. exchange-traded derivatives

Market structure and operational framework

Detailed analysis of contract specifications (USD/INR, EUR/INR)

Trading mechanisms: Order types, margin requirements, and systems

Pricing models for currency futures and options

Concepts like arbitrage and cost of carry

Factors influencing the pricing of currency derivatives

Managing operational, credit, and market risks

The role of mark-to-market settlement and margin calls

Tools and strategies for effective risk management

Hedging strategies to mitigate exchange rate risks

Techniques for speculation and arbitrage in currency markets

Case studies and practical examples of hedging

SEBI and RBI regulations governing currency derivatives

Roles of clearing corporations, exchanges, and intermediaries

Compliance standards and code of conduct for market participants

Tax implications of trading in currency derivatives

Accounting standards for derivative transactions

Practical examples of accounting for derivatives