International Banking and Finance Assignment
Added on 2021-01-02
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International Banking andFinance
EXECUTIVE SUMMARYThe report summaries the entire different trading activities that are part of indices tradingduring an accounting period. There are several trading strategy that support to make specificdecision in respect to trade in particular currency such as day trading that is a methods of sellingand buying of securities in a day to gain profit. Position trading is a method to buy and holdstock that are performed by advance trader for longer term. This kind of trade last of many daysor week according to the trend in market. Report discuss the types of financial instrument thatare consider to be assets that could be traded and can be seen as packages if capital that might gettraded in upcoming time. Assorted financial instruments such as Nikkei Index, Nasdaq,Crypotorescue the provide the flow and transfer of capital. In a respective time frame from27/04/18 up-to 08/05/19 there were total 26 transaction in different currencies such as GBP,NKI, USD, NZD, EUR, AUD, HSX, CNH etc. In that specific period there were losses inaccount due to different reasons such as fluctuation in market and there were stop loss, manytime user itself closes the deal as there were better trading option in future. The user also takeprofit by giving proper time to a respective deal when market condition are goods in short periodof time. The report also discuses risk management activities that are helpful in reducing theexcess losses to user in specific time frame. Such as Mark to market that is a valuation method inwhich open position are market to forward market price so that trader may create chances ofpotential profit and loss.
Table of ContentsEXEXUTIVE SUMMARY.............................................................................................................2INTRODUCTION...........................................................................................................................2MAIN BODY...................................................................................................................................2Sophistication and Management of the Trading Strategy: ..........................................................2Use of Theoretical Tools to support the trading strategies..........................................................3Research and external sources:...................................................................................................4Use of trade and risk management tools:.....................................................................................5CONCLSION...................................................................................................................................6REFERENCES ...............................................................................................................................71
INTRODUCTIONIn present time, international banking is defined as the arrangement of different financialservices provided by a residential bank of any particular country to the individual living indifferent part of world (Edwards, Magee and Bassetti, 2018). The concept of internationalfinance also includes the deals in monetary interaction that usually happen in two or morecountries. It also includes, issues refer to financial management like foreign exchange andpolitical risk that might appear while controlling different multinational companies. In thisreport, various different risk management activities, different trading strategy with the use oftheoretical tools are being described in this report. MAIN BODYSophistication and Management of the Trading Strategy: For the purpose of successful completion of this report, the data gathered on tradingtransactions relates to one-year period commencing from May 8, 2018 to May 9, 2019. TheTrading activities undertaken have been carried out using the Easy Trade Platform, an onlinetrading site which provides multi-asset and multi-market information on which one can carry outtransactions. The total number of days that trading over which the trading has been conductedsums up to 169 days in the whole one year period that has been taken into account.Over the course of Trading Sessions, a number of deals had been stricken which variedon the basis of nature as well as size of the transactions. Mainly Indices Trading had beenexecuted which was not restricted to a particular Index. Some of the most prominent indicesinclude Cryptoresuce (CPR), Nikkei Index (NKI), NASDAQ (NDQ), Hong Kong Exchange(HSX) among others. For instance, Deal Reference 36631053 NKI/USD wherein a long positionhad been undertaken to buy 0.40 NKI as on May 8, 2019. The Opening Rate was 21555, it wasclosed in the same day after minutes of buying it on 21588 with a Profit of 93.96 AUD. Specificfor limit order the deal reference 34321263 AUD/USD was consider to make a buy of about400,000 AUD on 30 Apr 2018 at 23:58. To buy this particular open rate was 0.7535 that wasclosed on 08 may 2018 at 0.7460 with a loss of -4037.28 AUD. In context to limit order thereference deal number was 36631353 USD/JPY used to buy 100,000 on 8 may 2019 at a forwardrate of 110.10 and was closed by user on 9 may 2019 at 109.89 as the trigger forwared date is on10 may 2019. at this point there was a loss of -274.11 Aud. In a particular trading there were too2
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