Sr No. A.

Topic Preliminary Section Title page Certificate Declaration Acknowledgement Executive Summary Objectives Angel Broking Introduction Organization Structure Nature Of Competition

Page No.

1 2 3 4 5 6 7

1.1

Currency Market Introduction of Currency market. What is Currency? What is the Indian currency called? Foreign exchange market. General features. Purpose. History. Overview of International Currency Markets I. Market size and liquidity II. Markets - market participants Major Currencies of the World

16 16

1.2

18

1 1.3

22

1.4 1.5

31 Exchange rate Exchange rate mechanism 34

1.6

Economic variables impacting exchange rate movements. A. Factors affecting exchange rates 1. Fundamental factors: 2. Technical factors: Foreign Exchange Reserves

37

1.7

43 Economy of India Post-liberalisation period (since 1991) Sectors 49 2.3 2.4 Foreign Direct Investment 53 Overview Of Currency Market In India A. Historical Perspective 2.5 Foreign Exchange Derivative Instruments In India i. Foreign Exchange Forwards ii. Foreign Currency Rupee Swap iii. Foreign Currency Rupee Options iv. Cross-Currency Options v. Cross-Currency Swaps Currency Futures In Indian Context i. Over-The-Counter V/S Exchange Traded ii. Contract Specification Of Currency Futures Indian Currency Exchange i. National Stock Exchange ii. Mcx-Sx 54 46 48 2.2

2.1

58

2 2.6

60

2.7

77

DESCRIPTION OF CURRENCY MARKETS 3.1 A. Number of Markets. i. Spot Market ii. Forward Contract Market iii. Currency Swaps iv. Futures Market v. Cash Options Market vi. Futures Options Market vii. Exchange-Traded Funds (ETFS). Transactions In Interbank Markets 3.2 i. ii. Direct Quotation. Indirect Quotation

82 82

86

3.3

Risks in Foreign Exchange Trading 88 i. ii. iii. iv. Exchange Rate Risk: Interest Rate Risk: Credit Risk: Country Risk:

CONCLUSION

91

BIBLIOGRAPHY

92