A Foreign Exchange Primer 2e

SHANI SHAMAH joined Jared James Associates as a Director mid 2006 to focus on treasury products including foreign exchange, currency options, commodities and the spectrum of short-term money markets instruments. The coverage extends globally across all revenue and non-revenue generating areas with specialization in trading, sales, structuring, research/strategy and eCommerce. With over 26 years experience in the City with various top and second tier international financial institutions, mostly in foreign exchange and currency options, she is also a specialist in the business development of eCommerce offerings (both institutional and retail) and a generalist in various other financial products with a formidable appreciation and market awareness of the risk management and compliance functions.

Disclaimer ix 1 Introduction 1 PART I MARKET OVERVIEW 7 2 A Brief History of the Market 9 3 MarketOverview 25 4 Major Participants 33 5 Roles Played 43 6 Purposes 45 PART II FOREIGN EXCHANGE PRODUCTS 49 7 Spot Foreign Exchange 51 8 Forward Contracts 59 9 Short- and Long-Dated Contracts 69 10 Broken-Dated Contracts 73 Glossary of Terms for Chapters 7 to 10 77 11 Non-Deliverable Forwards 81 12 Foreign Exchange Swaps 91 13 Currency Swaps 95 14 Foreign Exchange Options 99 15 Picturing Profit and Loss of Options 117 Glossary of Terms for Chapters 14 and 15 133 16 Foreign Exchange Futures 137 17 Exchange for Physical 145 PART III ESSENTIAL KNOWLEDGE 149 18 Foreign Exchange Dealing Rooms 151 19 Managing the Relationship with an Institution 155 20 Foreign Exchange Dealings 159 21 Foreign Exchange Market Orders 165 Glossary of Terms for Chapter 21 169 22 Electronic Foreign Exchange Trading 171 23 Margin Trading 179 PART IV FUNDAMENTALS AND TECHNICAL ANALYSIS 183 24 Fundamental versus Technical Approaches 185 25 Fundamental Analysis 191 26 Key Factors Impacting Currencies 197 27 Technical Analysis 207 Glossary of Terms for Chapters 24 to 27 221 28 Market Psychology 223 29 Final Remarks 231 Index 235