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Indian Institute of Management Bangalore

Foreign Exchange Markets: Concepts, Instruments, Risks and Derivatives

Indian Institute of Management Bangalore via edX

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In this course, part of the Professional Certificate program ‘Risk Management in Banking and Financial Markets’, we will learn the theory and structure of foreign exchange markets, the instruments that are traded and the trading and settlement mechanisms. We will also learn how to identify, assess and manage foreign exchange risk as well as the role of derivative instruments in hedging these risks.

Thanks to the economic liberalization in several countries over the last few decades, the world has witnessed an exponential increase in the free flow of capital across countries, even more so in emerging economies. This has resulted in a globally interconnected ecosystem of banks and financial markets engaged in foreign exchange transactions that are continuously growing in volume, sophistication and complexity. That, in turn, has attracted a plethora of participants whose explicit intention is to either profit from or hedge against the heightened level of risks in the foreign exchange markets.  

This course will unravel those complexities and help you gain a comprehensive understanding of foreign exchange markets: the underlying theories, the instruments traded, the associated risks such as transaction exposure, operating exposure, translation exposure, etc. and how those risks are addressed/redressed using several techniques including using derivative instruments such as currency options, currency futures and currency swaps.  

This course is part of IIMBx's Professional Certificate program ‘Risk Management in Banking and Financial Markets’. 

Taught by

PC Narayan



4.8 rating, based on 5 Class Central reviews

Start your review of Foreign Exchange Markets: Concepts, Instruments, Risks and Derivatives

  • Anonymous
    Course and concepts delivered in a very lucid manner. Only one suggestion I would like to give regarding Option instruments. Course designed keeping in mind option as an Exchange Traded instruments hence lot sizes etc are mentioned. An input that these are also very popular OTC instruments and can be customized for hedging or speculation purpose would have been more helpful.
  • Shashi Kant Tripathi
    course was very good. All the related topics were covered. after going through course I feel more confident about my credential as risk manager.
  • Anonymous
    It was great taking this course.I highly satisfied with the course.The instructor was stupendous,explained everything clearly.I had zero knowledge about this field but now i have gained high knowledge as well high interest in this topic.Studying from videos was very exciting also the weekly assessments were of great help.The course was very well organised that even a beginner like me could do it without any difficulty.
    Thanks for giving us such great experience.
  • Anonymous
    Hello, This is Ch.Umamaheswara Rao from Hyderabad.

    I had read the intro given above on Foreign Exchange Markets: Concepts, Instruments, Risks and Derivatives. It is very nice and would help me in my day to day work environment. Further I am interested in learning the concepts of the Risk management and derivatives. I would be grateful to you if you can provide me the course fee, from when next batch will start etc.

    Thank you

    Ch.Umamaheswara Rao
  • Anonymous
    I have just completed the course.I had zero knowledge in this field before starting the course.But now since i've completed i can say i am highly satisfied with the knowledge i gained from this course.The whole schedule was kind of exciting.Mainly short videos and weekly test assessment were of great help.Also the language the mentor used was pretty easy and helpful for a beginner like me to understand.

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