NATIO

ONAL STOCK
S
EXCHA
ANGE OF INDIA
A LIMITE
ED
Depart
rtment : SB
BU-Educatio
on
NCFM
M COURS
SE OUTLINE

Currency Derivatives: A Beg

ginner's Mo
odule

Derivatives
s as a Risk
k Managem
ment Tool
Concept off risk; Risk managemen
m
nt; Types off traders in the derivativves marketts

Currency Markets
M
Exchange rate;
r
Fixed and floating
g exchange rate regime
e; Factors aaffecting exchange rate
es;
Concept off quotes; Tic
ck-size; Sprreads; Spott transaction
n and forwaard transaction

F
Currency Futures
Forward co
ontracts; Futures contra
acts; Pricing
g of futures contracts

Strategies using Currrency Futu

ures
Hedging, speculation and
a arbitrag
ge in curren
ncy futures

NSE's Currrency Derivatives Se gment

Product definition; Trading underllying versus
s trading futtures; Usess of currency
y futures at
NSE

Trading, Clearing,
C
Se
ettlement a
and Risk Ma
anagement
Membershiip; Future contract spe
ecifications; Trading sys
stem; The ttrader works
station; Bassis of
trading; Clie
ent-Broker relationship
p in derivativ
ves segmen
nt; Clearingg entities; Po
osition limitss;
Margins; Se
ettlement of contracts.

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