Is Forex market covered in CFA material?

I didn’t see any.

it is covered some at level 3

In level 2 Dreary. At least for 2009

Where in L2?

Economics

You’re right, some of it is there. What a weird place to include it!

In level 3 it is under Risk Management

Would I lie to you? :wink: I agree though, sort of a weird place to put it, but when you start talking inflation and interest rates for concepts like International Fisher Effect I guess it makes sense.

i have seen FX related material in CFA. L2 and L3 i believe.

Dreary Wrote: ------------------------------------------------------- > You’re right, some of it is there. > What a weird place to include it! FX is intensely related to Macro trends.

FX isn’t directly covered the way equities, fixed income, an derivatives are. It appears in L1 in economics. It appears in L2 in terms of the effect on balance sheets and in ICAPM. At L3 there is currency hedging, and there was some issue about the correlation of currencies somewhere, end of L2 I think. But there isn’t much that would help an FX trader, it’s mostly about how to hedge currency exposure.

Would anyone recommend any good fx books? fxguy?

still surprising that it isn’t covered well, even though it is a huge market and trading forx has its own terminology, specs, strategies, etc. In that sense, it is more of a trading issue than economics.

TheAliMan Wrote: ------------------------------------------------------- > Would anyone recommend any good fx books? fxguy? Yea check out the FX book by Tim Weithers - it is a pretty good general overview by the guy who used to head UBS training department. http://www.amazon.com/Foreign-Exchange-Practical-Markets-Finance/dp/0471732036/ref=sr_1_1?ie=UTF8&s=books&qid=1234217647&sr=1-1

Much appreciated fxguy, thank you

TheAliMan give me your email and I’ll send you some stuff that I have if you want to take a look at it.

Thanks brian, djaliman at shaw dot ca

i don’t think FX is covered cause FX in and of itself is not that complicated. FX to me is basically price theory (economics).

FrankArabia Wrote: ------------------------------------------------------- > i don’t think FX is covered cause FX in and of > itself is not that complicated. > > FX to me is basically price theory (economics). FrankArabia, what abt FX option and swaps, NDF? how you quote them and have you traded any of them? if you are talking abt plain vanilla that is simple but FX can be complicated in trading…how pairs move in correlation with other securities (Yen and dollar strengthening due to flight to quality and unwinding of carry trade)? terminology? Some FX desk also does precious metals too. What economy #s are driving pairs? Learn beyond what the CFA program teaches for FX.

i don’t speculate with FX or securities for that matter. only boxing fights. sounds like you’re talking about sophisticated speculation. yes, its very hard to make money from it in the long run which makes modelling “pairs and how they correlate with other securities” so difficult.