Bangalore

Study on

Foreign Exchange Trading

At BB Advisory

Submitted by

Borra Supriya

Registration No:

210101211041

Under the Guidance of Prof.

Dr. Momina Bushra

In partial fulfilment of the Course - Industry Internship Programme - IIP

in Semester II of the MBA FINANCE

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 Master of Business Administration

Industry Internship Programme (IIP)

Declaration

This is to declare that the report titled “ Foreign Exchange Trading ” has been prepared for
the partial fulfillment of the Course: Industry Internship Programme (IIP) in Semester II by
me at BB Advisory (organization) under the guidance of Prof. Dr. Momina Bushra.

I confirm that this report truly represents my work undertaken as a part of my Industry
Internship Programme (IIP). This work is not a replication of work done previously by any
other person. I also confirm that the contents of the report and the views contained therein
have been discussed and deliberated with the faculty guide.

Signature of the Student :

Name of the Student (in Capital Letters) : BORRA SUPRIYA

Registration No : 210101211041

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 Master of Business Administration

Certificate

This is to certify that Mr. / Ms. BORRA SUPRIYA Regn. No. 210101211041 has completed
the report titled FOREIGN EXCHANGE TRADING under my guidance for the partial
fulfillment of the Course: Industry Internship Programme (IIP) in Semester II of the Master of
Business Administration.

Signature of Faculty Guide:

Name of the Faculty Guide: Prof. Dr. Momina Bushra

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 Table of contents
Chapter No Chapter Name Page No

Executive Summary 5
1 Introduction 6
1.1 Industry Overview 7
1.2 Company Iverview 12
2 Work Profile 14
2.1 Objectives of the Study 14
2.2 Methodology or How the work was carried out 15
3 Observation and Analysis 17
4 Findings 18
5 Recommendations 19
6 Conclusion 20
7 Learning Outcome 21
Annexure 22
References 24

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 EXECUTIVE SUMMARY

This report contains the details of my 2-month long internship experience at BB Advisory as
a forex trader. The internship lasted for two months, the first month being training and the
latter month dedicated to actual trading in the forex market.

During the first month, I was given a training regarding various aspects of forex trade and
methods to effectively analyse the market movements and sentiments to make wiser
investments. I was asked to maintain a demo account with virtual currency for trading
purpose during the training period.

After the end of training period, I was instructed to acquire a client and assist and advise
them in creating a live forex trading account and invest through their portfolio in the forex
market with the help of concepts and strategies learnt during the training period.

The objective of this internship is to get me familiarized with the forex trade and various
aspects of forex trade to let me enhance my investing skills to make rational investments.

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 CHAPTER 1: INTRODUCTION

The internship is concerned with FOREX trading. Training of about one month was given in
various aspects of FOREX trade such as, market terminology, stock exchanges and indices,
analysing market sentiments, analysing market trends using fundamental and technical
analysis, charts and patterns, impact of government policies on forex markets, types of
market execution and so on.

Creating and maintaining a demo account with virtual capital was also part of the training.
The objective of maintaining demo account is to put the theories into application.

After the training period, we have to acquire a client and assist and advise them in creating a
live forex trading account and invest through their portfolio. During this period of one
month, we are supposed to place the concepts and theories learned into application. With
the use of concepts and analysing market trends and sentiments, we are supposed to make
rational investments through the live account.

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 1.1 INDUSTRY OVERVIEW

The Forex market is a global market place for exchanging national currencies. And also, they
tend to be the most liquid asset markets in the world. Forex market constitutes 2 levels –

 Interbank market: where large banks trade currencies for the purpose of hedging,
balance sheet adjustments and on behalf of clients.
 Over-the-counter market: where individuals trade through online platforms and
brokers.

Forex markets exist in various forms such as spot markets, derivatives market, currency
swaps, outright forwards, foreign exchange swaps and options. Unique feature of this
market is that there is no central marketplace for exchange of foreign currencies. Trading is
done electronically. So, individuals have complete access to the market without the need of
any third party for transactions.

From an individual perspective, forex market generally refers to Spot market. In this type of
market, an agreement is drawn out between two parties to exchange one currency for
another at an agreed price for settlement on a spot date and the exchange at which the
transaction has taken place is called Spot Exchange Rate.

The next important instrument in the forex market is the Forward contract. It is an
agreement between two parties to buy a currency at a future date but on a price that is
predetermined on the day of agreement based on the market condition of that day.
Forward contracts are traded in the Over-the-Counter (via broker-dealer network) markets.

Currency Swaps are the most common form of forward transactions, in which, two parties
agree to exchange currencies for a certain period of time as stated in the agreement and
then reverse the transaction or swaps back their respective currencies after the maturity of
the contract.

Similar to the Forward Contract is the Futures Contract, the only difference being that the
futures contract is traded on exchanges unlike the forward contract.

Forex market is globally decentralized driven by many local sessions, the dominant ones
being London, Sydney, Tokyo and New York.

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The exchange rates are determined by the market forces of supply and demand and the
market sentiments. Any major announcements or decisions made by various influential
governments or any crisis situations can have a major impact on the market fluctuations
causing the exchange rates to fluctuate unsteadily.

The Forex market is unique because of the following features:

 Minimal trading costs.

 Huge trade volume and high liquidity.
 Geographical dispersion.
 Continuous operation – 24 hrs a day for 5 days a week (except for weekends).
 Use of leverage to enhance profit and loss margins.

GLOBAL SCENARIO:

According to the 2019 report of BIS Triennial Survey, the global foreign exchange trade has
increased to up to $6.6 trillion per day. This is due to the increased use of FX Swaps for bank
funding liquidity management and hedging of foreign currency portfolios as well as growth
in prime brokerage. Online trading platforms have also boosted the forex trading as the
individuals have exclusive access to trade in the markets. The global foreign exchange
market is expected to grow at a CAGR (Compound Annual Growth Rate) of 7.5% during the
period 2021-26 as per the market researcher Research and Markets store.

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Forex market is divided into various levels of access. At the top level of access of forex
market lies the Interbank forex market, which comprises of the largest commercial banks
and securities dealers. The top-tier interbank market accounts for 51% of all the
transactions.

Top Interbank market traders and their respective market shares include:

 JP Morgan – 10.78%
 UBS – 8.13%
 XTX Markets – 7.58%
 Deutsche Bank – 7.38%
 Citi – 5.50%

Various currencies derive their value based on the demand and supply forces of the market.
Most traded currencies by value based on the proportion of daily volume:

 United States Dollar (USD) – 88.3%

 Euro (EUR) – 32.3%
 Japanese Yen (JPY) – 16.8%
 Pound Sterling (GBP) – 12.8%
 Australian Dollar (AUD) – 6.8%

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Key Market Segmentation:

Based on counterparty

 Reporting dealers
 Other financial institutions.
 Non-financial customers

Based on type

 Spot trade
 Currency swap
 Outright forward and FX swaps
 FX options

Based on region

 North America
 South America
 Asia pacific
 Europe
 Middle east and Africa
 Australia

INDIAN SCENARIO:

The Forex trade in India was earlier done through the medium of a third party i.e., through
brokerage firms. But with the advancement of technology, individuals have got the access to
trade in the forex market making India one of the major players in global forex trade.
According to the BIS Triennial survey 2019, India is the 16 th largest forex trade market in the
world.

Many brokerage firms, commercial banks, financial institutions have been actively
participating in the forex trade making India one of dominant players.

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LEADING GLOBAL PLAYERS:

Leading forex markets in the world include:

 London
 New York
 Hong Kong
 Tokyo
 Singapore

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 1.2 Company overview

BB Advisory, Wealth Management, is one of the most prominent financial services providers
headquartered in Bangalore, India. Their main focus is in Stock Markets, FX advisory
services, Treasury Elite, commodities market. They are also engaged in training & consulting
services mainly in the fields of BSE, NSE, MCX, NCDEX, COMEX, and CFD.

They facilitate training and advisory services to individuals, corporate, investor, traders in
order to help them gain knowledge and experience in the field of trading.

BB Advisory is committed to educate and transform the way people invest and trade their
hard-earned money. Ultimate goal is to financially empower millions of investors and
traders and to help them understand better side of financial markets. The company’s
distinct clientele list includes:

 Retails investors/Traders
 Brokerage firms
 Venture Capitalists
 Foreign Institutional Investors (FII)
 Corporate
 Students / Unemployed individuals

In a holistic view, BB Advisory’s main objectives are not only to provide qualitative services
& employment opportunities, but also to transform individuals into entrepreneurs. Indian
Financial markets has the highest potentials to create employment opportunities in the Next
10 years.

Over the years, the company has been training numerous individuals including students in
the forex market trade in order to help them become an independent trader with a good
passive source of income.

With the training, we understand various sentiments of the market and analyse the trends
before investing as the forex market carries greater risk as well as a high return unlike the
stock markets.

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SWOT ANALYSIS

During the period of internship, I have analysed the strengths, weaknesses, opportunities
and threats of the company in order to get a complete understanding of the company’s
position and its progress.

Strengths

 Strong foothold in the emerging forex industry.

 Company’s vision and mission – to train and educate individuals and helping them in
becoming independent traders.
 Committed and diversified workforce engaged in harmonious working environment.
 Strategic location of the company – Bangalore, a place where individuals prefer to be
independent and look for opportunities to create financial resources for themselves.
 Diversified services provided by the company.

Weaknesses

 Its reach is far beyond from many individuals as the company’s expansion is limited.
 The company has not concentrated on marketing, due to which people are unaware
of its existence.
 The limited sources of finances have hindered the company’s expansion to a great
extent.

Opportunities

 Innovative marketing strategy can help increase its reach.

 Using the technology to reach greater number of people through online platforms
and extend its foothold.

Threats

 Emerging competitors pose a greater threat to its stronghold.

 Instability of the market forces can turn the investment risky which may not be liked
by many individuals as they may prefer less risky income sources.
 Online sites which provide information free of cost can be potential threat as they
provide information free of charge which people might probably prefer.

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 CHAPTER 2: WORK PROFILE

2.1 Objectives of the study

The company provides various services and training in various aspects. My internship
specifically directed at Forex trading and the objectives of learning forex trading is as
follows:

 Understanding and working on pair trading.

 Applying tools, techniques, strategies used in trading international currencies and
commodities
 Recognize & examine the basics and risk rewards of the stocks, commodities and
currency market.
 Handling risk and money management.
 Negotiating profitable contracts.
 Provide client consultation to develop investment objectives.
 To educate and advise individuals on investment decisions. Work on acquired clients
and trade in his/her portfolio.
 To understand the operations of foreign exchange market and various instruments
used in the market.
 To understand the underlying principles of currency valuation.
 To understand techniques that can be used to minimize the foreign exchange risks.
 Relating the incidents happening across the world and their influence on the forex
market fluctuations.
 To utilize the opportunities of the emerging forex trade industry with the application
of the concepts in trade.
 Formulating strategies to reduce the impact of market volatility on the investment.

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 2.2 Methodology or how the work was carried out

My work is concerned with understanding the concepts and principles underlying the
functioning of foreign exchange markets and place them into application to make wiser
investments.

 The scope for research is minimal though I need to keep a tab of all the notable
incidents happening in the world which can potentially influence the market
fluctuations.
 I have understood how can an incident trigger market fluctuations and cause
sentiments to go unstable.

How the work was carried out:

My internship was for 2 months. During this period of time, the 1 st month was dedicated to
training and the letter month was dedicated to practical experience.
The training included both theoretical and practical aspects. The theoretical concepts
include:

 Basic concepts of forex trading

 Types of charts
 Types of Trading
 Trading Plans
 Trade setup & Rules
 Trading Hours
 Money Management
 Chart Indicators
 Trade Personality
 Trade with News
 Fundamental analysis
 Technical analysis

The practical part included the requirement of opening a demo account with virtual
currency of 10,000 USD carrying a leverage of 1:100.

The concepts that we learn are to be applied while trading in the demo account during the
training period to get complete understanding of the concepts and their application. To
analyse the market trends and sentiments we had to follow the news on a daily basis and
make the investments accordingly.

During the latter half of the internship period, I was supposed to acquire a client and act as
an advisor for his/her investment in forex market and trade in his/her portfolio using the
knowledge I have acquired during the training period. I have used the tools, techniques and

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strategies to make profitable and wiser investments. The ultimate objective was to
maximize the profit by minimizing the risk simultaneously.

The live account carried the same leverage as the demo account but the investment differed
based on the client’s willingness.

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 CHAPTER 3: OBSERVATION AND ANALYSIS

The following are the observations that I have made during my internship at BB Advisory.

 At our firm, we were placed under an industry expert for training and guidance in
the forex market.

 We were given extensive training and guidance in the process of maintaining the
demo account.

 Our guide has also helped us analyse the market sentiments and trends on a daily
basis. Hence, we have received continuous guidance.

 Our HR has contacted us frequently to keep a tab on the progress of our internship
and asked for feedback and any issues to be reported.

 Their main objective was to guide and advise individuals in their investments and to
increase the company’s client fold through the interns.

 Day to day monitoring of the market charts and analysing their trends by the guide
helped in making better decisions.

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 CHAPTER 4: FINDINGS

 Need for interaction:

The internship was carried on in online mode. This has impacted the interaction
among interns and also made the communication with superiors difficult. This made
us feel less connected to the organization.

 Standard communication partner for an intern:

A standard communication partner throughout the internship is necessary to share
all the information at the right time without any hassle.

 Effective convey of Information:

In the forex trade proper convey of information at the right rime is the most
important thing. The investment solely depends on the information we get and the
interpretation we do out of it.

 Importance of Market watch

The market is highly volatile as it can be affected by various aspects and incidents.
Hence, a continuous and thorough watch of market fluctuations is utmost important
in order to minimize the risk.

 Efficient Analysis of the news

Efficient analysis of the information is as important as gathering the information.
Only with the right analysis can we end up with the right conclusion. Any mistake in
the analysis can be proven burdensome.

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 CHAPTER 5: RECOMMENDATIONS

Based on my observations as an intern at BB Advisory, I have the following

recommendations which might help the company in improving its efficiency and quality of
work environment.

 Due to workspace constraints, interns are not getting to interact with each other and
merely remained as strangers. If they can interact more, they can come up with
innovative ideas which would help the company in improving its efficiency. If not
daily, they can at least organize weekend meetings at the company so that, everyone
can interact and get to connect more with the company environment.

 As the communication with the company is not strong enough, we have faced some
problems and confusion regarding whom to contact for a particular issue. So, I
believe if the company can give the details of respective persons from each
department with whom we can share our issues would be a lot more helpful.

 Some tests could have been conducted to ensure that the trainees have understood
the concepts well.

 Increase in advertising can help the company in expanding its fold and also venturing
into new markets.

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 CHAPTER 6: CONCLUSION

This internship has given me a practical exposure to the trading world and the corporate functioning.
It helped me analyse how to relate my theory to my application in a practical way under magnificent
guidance at every stage my progress. Forex trade is an emerging industry which can have many
opportunities to one who strive for them. With this experience of 2 months, I believe that I can take
the advantage of the opportunities available and can utilize my knowledge efficiently and can gain
additional skills in the process of continuous learning.

This internship has also boosted up my enthusiasm to acquire knowledge and put it into practice. As
the global countries are moving closer to each other, the interactions between the countries would
become much more immense than it is now. This training has given me the confidence and skills to
take the advantage of awaiting opportunities to make me a better self.

This internship has also made me understand how a corporate world works and how to improve
ourselves according to the changing environment in order to cope up with trends. It has made me
realize that ‘learning is a never ending process’ as there will be something new everyday to be
learnt so as to not left behind the faster developing technology and the world.

On the whole, this was a wonderful and refreshing experience that was completely out of what I
have learned from books.

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 CHAPTER 7: LEARNING OUTCOME

After the completion of the internship as a Forex Investment Advisor at BB Advisory the
following are the things that I have learnt:

 Recognizing the basics of the international Currency market.

 Examining the risks and rewards in the currency market
 Determining the participants in the Currency market and their respective roles.
 Appraising the effect of the global incidents on the currency market sentiments.
 I have become much more thoughtful before taking an action thinking about the
consequences as I have done while investing.
 I have become resistant to fluctuations as the market has more mood swings than an
individual.
 I have learned how to cope up with deadlines and how to manage my stress and
train my thoughts in order to become a better self.
 I have also understood how an individual can earn passive income with proper
knowledge and strategies.
 I got to know how the foreign exchange market can have an impact on the currency
of the nation with its fluctuations.

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 ANNEXURE
Mission
Building personalized portfolio that suits your need.

Vision

To deliver ABQ (Awareness, Branding & Quality) in financial market.

Values

We believe that the success of our clients, our program participants and all those whom we
are able to help with our services is a true reflection of our success . Our beliefs and values
define on what we stand, and determine towards what we work together.

Integrity

We believe in ourselves, in our clients, and in our competencies. We know what WE CAN
DO, we say at WE KNOW, and importantly we do WHAT WE SAY.

Commitment 

We are committed to Quality of services at every platform, which ultimately leads to better
Performance & Result.

Relationship

We allow relationships to drive our business and do not allow the business to drive our
relationship.

 We believe that Transparency driven by Knowledge can bring Quality Result.

Services offered by the company

 Training for individuals regarding concepts of trading and their applications. And
also, about the functioning of the markets and their underlying principles.
 Advisor and manager of client portfolio investments
 Handling risk and money management.
 Consultation for client investment objectives.

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Tools used for collection of data:

 Starnet Meta Trader 5 application – for forex market watch and trade.
 www.Investing.com – to analyse suitable investments based on the market
condition.
 www.dailyfx.com – to analyse market sentiments and global financial news and to
get a timely fundamental, economic and technical analysis of the market.

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 REFERENCES

 Official website BB Advisory -https://bbadvisory.co.in/

 BIS Triennial survey report 2019 - https://www.bis.org/statistics/rpfx19_fx

 www.investopedia.com/terms/forex/f/forex-market

 https://en.wikipedia.org/wiki/Foreign_exchange_market

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