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Trading in the Global Currency Markets

Fri, Jun 30 2006, 15:01 GMT
by FXstreet.com Team

FXstreet.com


About the Author

Cornelius Luca photographMr. Luca is an internationally renowned foreign exchange and technical analysis expert. He has more than 20 years of experience in the currency markets; he had traded spot, forwards, futures and currency options at Creditanstalt Bankverein (now Bank Austria), Prudential Securities and Sanwa Bank (now UFJ).

He is the author of 'Trading in the Global Currency Markets' (Second edition 2000, First edition 1995), 'Technical Analysis Applications in the Global Currency Markets' (Second edition 2000, First edition 1997), both published by Prentice Hall, 'Technical Analysis Applications', 2004, published by McGraw-Hill and 'Practical Introduction to Technical Analysis', 1997, published by Euromoney.

He has conducted training programs in FX and Technical Analysis around the world since 1989.

Mr. Luca holds and MBA from the New York University Stern School of Business with a double major in International Business and Finance.

Book Synopsis

PART 1: The Basis For Foreign Exchange Activity

Chapter 1. Why Foreign Exchange Occurs
  • Internationalization
  • FX volatility
  • Interest rates volatility
  • FX innovations
  • Telecommunication development
  • Computer (hardware and software) development
  • FX profitability
  • Increased corporate interest
  • Increased players' sophistication
PART 2: A Historical Perspective of the FX Markets

Chapter 2. Historical Developments in Foreign Exchange
  • The Bretton - Woods Accord
  • The International Monetary Fund (IMF)
  • The Special Drawing Rights (SDRs)
  • The Smithsonian Accord (1971-1973)
  • The European Joint Float
  • The Free - floating Market
  • Free-floating, semi-pegged, pegged and dirty-floating currencies
Chapter 3. The European Monetary System - EMS
  • The "snake" in the "tunnel"
  • Characteristics of the EMS
  • Fundamental disadvantages of the EMS
PART 3: Inside the World of Foreign Exchange

Chapter 4. The Foreign Exchange Market Place
  • Understanding the characteristics of the major currencies
  • Major players
  • Major FX markets
Chapter 5. Foreign exchange risks
  • Exchange risk
  • Credit risk
  • Country risk
  • Interest rate risk
Chapter 6. Central banks

Chapter 7. Price structure and FX terms
  • Bid and offer
  • FX terms
  • Leave orders
  • Daily currency fixings
Chapter 8. Corporate trading
  • Role of FX for corporations
  • Types of corporations
  • Types of exposures
  • Hedging
  • Executing the transaction
Chapter 9. Settlements
  • Back-office operations
  • Nostro accounts
  • SWIFT
  • CHIPS
  • Telex
Chapter 10. Conducting FX trading (brokers' market vs. direct market)
  • Brokers
  • Dealing systems
  • Matching systems
PART 4: Understanding the Major FX Instruments

Chapter 11. Spot market

Chapter 12. Forward outright and swaps markets

Chapter 13. Cross market

Chapter 14. Futures market

Chapter 15. Options market

Chapter 16. Major options strategies

Part 5: Foreign Exchange Forecasting: Fundamental analysis

Chapter 17. Economic indicators
  • Models of exchange rate determination
  • GNP
  • Industrial sector indicators
  • Construction indicators
  • Inflation indicators
  • Trade indicators
  • Employment
  • Consumer spending indicators
  • Leading indicators
  • Personal income
Chapter 18. Financial factors and socio-political factors
  • Money supply
  • Interest rates
  • Information sources
Part 6: Foreign Exchange Forecasting: Technical analysis

Chapter 19. Introduction to technical analysis
  • Types of Charts
  • Volume and open interest
  • Trends
  • Percentage retracements: traditional, Fibonacci,Gann
Chapter 20. Trend reversal formations
  • Head and shoulders (and inverse head and shoulders)
  • Double tops and double bottoms
  • Triple tops and triple bottoms
  • Rounded tops and rounded bottoms
  • V-formations
  • Diamond
Chapter 21. Trend continuation formations
  • Flags
  • Pennants
  • Triangles
  • Wedges
  • Rectangles
Chapter 22. Formations unique to bar charts
  • Common gap
  • Breakaway gap
  • Runaway gap
  • Exhaustion gap
  • Island reversal
  • Key reversal days
Chapter 23. Point and figure charting
  • Breakout of a triple top
  • Breakout of a triple bottom
  • Breakout of a spread triple top
  • Breakout of a spread triple bottom
  • Breakout of an ascending triple top
  • Breakout of a descending triple bottom
  • Upward breakout of a bullish resistance line
  • Downward breakout of a bearish support line
  • Downward breakout of a bullish support line
  • Upward breakout of a bearish resistance line
  • Upward breakout from a bullish triangle
  • Downward breakout from a bearish triangle
Chapter 24. Candlestick charting
  • Daily blank candlestick
  • Daily black candlestick
  • Daily reversal patterns
  • Two-day candlesticks combination
  • Bullish signals
  • Bearish signals
  • "Wait-and-see" signals
  • Other reversal signals
Chapter 25. Moving averages
  • Simple
  • Linearly weighted
  • Exponentially smoothed
Chapter 26. Oscillators
  • MACD
  • Bollinger bands
  • Momentum
  • Other momentum oscillators: ASI, CCI, ROC, SI and TRIX
  • Relative Strength Index
  • Stochastics
  • Larry Williams %R
  • The parabolic system (SAR)
  • Directional Movement Index (DMI)
Chapter 27. Gann Analysis
  • Cardinal square
  • Squaring of price and time
  • Geometric angles
Chapter 28. Elliott Wave Principle
  • Visit Cornelius Luca's website
  • Read the Daily Market Commentary by Cornelius Luca

Special Feature

Trading in the Global Currency Markets book cover

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