COMM 377 - International Financial Markets and Institutions
Did you know that trading volume in the foreign exchange (FX) market surpasses that of the stock market by a staggering 20 times? Transactions within the FX market are driven by diverse factors, involving a myriad of products, institutions, and global locations. Whether a company seeks to hedge currency risk due to sales and costs being denominated in different currencies, a bank aims to mitigate currency risk stemming from its investments, or a liquidity provider engages in FX trading based on macroeconomic views, the FX market is dynamic and multifaceted.
The majority of these transactions are orchestrated by currency traders at major investment dealers. These professionals not only facilitate trades but also play a crucial role in guiding clients on risk management and trading strategies, contributing to the overall vibrancy of the market. Upon completing this course, you will gain a comprehensive understanding of how commonly traded FX products function, laying the groundwork for you to explore a variety of rewarding career paths in sales and trading, research, operations, and risk management both within the financial industry and in corporations outside the finance sector.
Learning objectives
Upon successful completion of this course, students will:
- understand how currencies are traded
- learn about the economic principles that shape the institutions
- given any example of risk exposure due to foreign currencies, implement a management strategy in order to mitigate or eliminate this risk
- given any economic news, the students should be able to analyze and debate its impact on the currencies’ values