financial markets - 2500 words
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DealingroomFXslides-1.pptxTRADING Simulation FX MARKET
BAFI 1002
Financial Markets
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TRADING Simulation FX MARKET
Financial Markets S2 2011
DEALING SCENARIOS
Read your scenarios carefully to understand the roles
Banks:
Liquidity provision
Profit making and Exchange rates risk management
Corporations:
Financing capital expenditures, investments, etc.
Speculation
Financial Markets S2 2011
Secondary task will require you to trade based on your market view. You must attempt the secondary task in this dealing session.
If you have predicted that the AUD will depreciate against the USD, how would you implement a trading strategy based on that? How do you profit to take advantage of such an exchange rate movement.
You can (and should) use any relevant news releases or conduct over the trading period if you believe it supports or goes against your market view. Ask your instructor about this.
Banks: instructor will speak to you about your secondary task at the start of the session. Can be started at any time.
Corporations: do not start until primary task is complete. Please inform your instructor once primary task has been completed.
Secondary task
TRADING REQUIREMENTS
Both price maker and price taker should keep a log of calls/communication during the dealing session
Save Transaction log, FX position summary and Portfolio summary at the end of the trading session
Corporation must also save the reports at the completion of primary task
Ensure that completion of tasks is reflected in your FX portfolio summary, based on the market rates
News, graphs other information relevant to the trading strategy/speculation should be saved and include in the report.
PORTFOLIO SUMMARY
Reports
Summary reports are available for saving and printing
FX Deals Transaction Log Report
FX Position Summary Report
Portfolio Summary Report
Saving Reports
Select Report
SAVING REPORTS
Export
Report
TRANSACTION LIMITS
Japanese Yen (JPY):
Maximum amount PT for JPY is 2 Billion.
Minimum amount PT for JPY is 100 million
Other Currencies (AUD, USD, GBP, EUR):
Maximum amount PT for all other currencies is 20 Million.
Minimum amount PT for all other currencies is 1 Million.
Trading Rules
Price makers must provide two way quotes upon inquiry by the price taker. e.g. GBP/USD: 1.5704 -1.5706
Buy / Sell decision should follow ONLY after the quotes are received / given.
Price makers (banks) CANNOT REFUSE to trade any currency.
Block trading is NOT allowed. Penalty of -1 mark applies for any obvious block trading.
Not picking up phones or refusing to trade and will result in penalty.
All communication must be done via phones. BOTH GROUPS WILL BE PENALISED -1 MARK EVERYTIME IF COMMUNICATION NOT OVER THE PHONE.
Failure to comply with rules of the trading game would result in suspension
