financial markets - 2500 words

Week 6: Introduction-3

Introduction to the week

Welcome to week 6! This week we will be in the trading room trading FX currencies. We will learn how to provide an FX quote and to transact currencies. 

The dealing sessions are simulation exercises during which you work in small groups, acting as banks or corporations. You will conduct simulated treasury dealing activities with your group using the foreign exchange.  Each student must attend two three hours dealing sessions, one in week 6 and the other in week 8. The first session will be a practice session, where the aim is to introduce the basic concepts of trading games and to allow students to get familiar with the simulated trading environment. Both dealing sessions will last for 3 hours.

In preparation for the dealing sessions, you will have to review your course notes to be ready for trading. You will have to review how to present and understand FX quotes. You will also have to prepare a market view (due week 7). You will be given access to Thomson Reuters Eikon (Refinitiv) online to prepare your market view and your assignment. Thomson Reuters Eikon (Refinitiv) contains financial news, financial assets and FX quotes and a wealth of economic data. Note that your group will have only one access, so your group will have to manage that resource carefully. Login details will be given to your group once your group is formalised.

Following FX Dealing Sessions, your group will have to submit a Dealing Session Report based on the team’s research and dealing room activities based on the last session. This Dealing Session Report will be a group assignment to be prepared by each team.

· You must attend all your team dealing sessions, and you must contribute to the team’s report in order to receive marks for this assignment (also see contribution statement).

· To conduct trading, you will have to work in teams of no more than 3 students.

· All practice session and dealing sessions will be held in the Treasury Training Facility in building 80 (SAB) room level 4 room 12 and 14.

Links to the learning objectives

This week will contribute to Course Learning Objectives 5,6 and 7 :

· Assess the operations of the foreign exchange market including the nature and determinants of exchange rates and relevant investment strategies.

· Work collaboratively in teams and communicate effectively during group treasury dealing activities.

· Consolidate the key components that constitute the activity in financial markets and what drives a live dealing room environment.

Purpose

After your first dealing session you should be able to:

· Demonstrate an ability to maintain a foreign exchange trading position.

· Explain how the interaction of supply and demand determines the foreign exchange value of a currency

· Distil, scope and critically analyse problems

· Use the technical tools and language of the field

· Recognise the uncertainty of business decision-making 

· Approach problems with intellectual openness and curiosity

· Communicate and collaborate effectively