FOREX

  • Credits: 3
  • Ending: Examination
  • Range: 2C
  • Semester: winter
  • Year: 2
  • Faculty of Economics and Finance

Teachers

Included in study programs

Financial Markets and Investing

Teaching results

Knowledge and understanding:
a) to apply thorough and sectoral knowledge in forex trading and to take critical stance towards current theories in this area
b) to use sophisticated methods and procedures from technical as well as fundamental analysis on level corresponding to international standards
c) to utilize obtained knowledge in solving key issues in the area of forex trading strategies
d) to demonstrate the ability to collect and to analyze data and information from various specializations and construct the recommendations for improvement of well known approaches to forex trading
Practical skills and competences:
a) to demonstrate an ability to work in team
b) to select and to use appropriate techniques and research methods
c) to be able to collect, to select and to analyze data
d) to take critical stance towards own results as well as to the results of other traders or clients
e) to formulate understandable and compelling presentations of own results
f) to demonstrate the creativity and intellectual curiosity in this specialization and to utilize them in following research
g) to use obtained skills in work with different trading softwares

Indicative content

1. Instruction for students connected with module. Position of FOREX on global financial market.
2. Introductory work with trading platform. Legal and administrative conditions of trading on trading platform of selected broker. Criteria for broker selection. Fundamentals of forex trading (lot, pip, margin, leverage, order, long and short position, bear and bull trend).
3. Work on trading platform (lot, pip, margin, leverage, order, long and short position) Trading on real and on better prices (orders) through trading platform.
4. Theoretical background of forecasting of foreign exchange rates on forex (martingal theory, random walk theory, theory of effective markets)
5. Analysis of foreign exchange rate develepment by charts (technical analysis, trends, types of charts. Work on trading platform (trend, types of charts)
6. Indicators of trend and oscilators (moving averages, MACD, ADX, RSI, Williams Percent R, Momentum, Stochastic Oscilator). Work on trading platform (trend indicators, oscilators)
7. Indicators of volatility and prediction indicators (Bollinger Bands, ATR, Eliotove waves, Fibonacciho approaches). Work on trading platform.
8. Psychology of FOREX traders.
9. Fundamental strategies on Forex I. Verification of trading strategies (value effect, long term mean reversion effect, term spread effect)
10. Fundamental strategies on Forex II. Verification of trading strategies (carry trade, forward yield curve and application of Markowitz model and VAR model on portfolio)
11. Money management on Forex. Application of money management on trading platform
12. Advanced strategies of Forex trading Verification of advanced strategies.
13. Basics of algorithmic trading.

Support literature

1. Chovancová, B. – Malacká, V. – Árendáš, P. – Kotlebová, J.. (2021) Investovanie na finančných trhoch. Bratislava: 2021 (v tlači)
2. Demjan, V. et al.(2011) Pravda a mýty of forexe: Ako obchodovať na najväčšom finančnom trhu, Trim S&P,s.r.o., Bratislava, 2011, ISBN 978-80-970630-9-2
3. Pilbeam, K.(2013). International Finance. Palgrave Macmillan, 2013, ISBN 978-0-230-36289-5
4. Archer, M. D. (2012). Getting Started in Currency Trading. New Jersey: John Wiley & Sons 2012. Fourth Edition. ISBN 978-1-118-25165-2
5. Turek, L. (2011). Manuál forexového obchodníka, Czechwealth 2011
6. Hartman, O. – Turek, L.(2009) První kroky na forexu. Computer Press, Brno, 2009, ISBN 978-80-251-2006-4
7. MacDonald, R. (2007). Exchange Rate Economics: Theories and Evidence, Routledge. Oxon, 2007, ISBN 978-0-415-14878-8
8. Eun, Ch,, S, – Resnick, B, G, (2008 ), International Financial Management, Irwin McGraw – Hill: 2008, second edition, ISBN 0070964904
9. Jankovská, A. a kol. (2003) Medzinárodné financie. Bratislava: Iura Edition 2003, ISBN 80-8904-756-4

Requirements to complete the course

30 % seminar activity
70 % written project – evaluation of 2-weeks trading on demo version of trading platform

Student workload

- hours seminar attendance 26 h
- hours preparation for seminars 13 h
- hours preparation for trading 13 h
- hours preparation for written project 26 h

Date of approval: 09.02.2023

Date of the latest change: 28.12.2021