FTS Real Time System Project: Trading Currencies In this case, you will trade currencies as an individual project. The goal of the exercise is to have some practical understanding of the mechanics of the spot foreign exchange market. This is also an exercise to encourage focused and well-organized writing on financial topics and to demonstrate your understanding of the determinants of foreign exchange rates as we will discuss them over the semester.
1. Initial Trade: Your trading account starts with slightly more than $1 million. You should start trading the day we discuss the case in class.
2. Weekly trading: you must trade on at least three different days each week, starting on the first week, though you may trade as much as you like. You can either buy or sell any foreign currencies. It is your responsibility to ensure your trades enter the system, and for the correct account, as you will be judged on your trading activity.
3. It does not matter if you make or lose money in the case. It is about learning the mechanics of how foreign exchange quotations work, which is valuable for foreign investments, international trade, FX hedging, etc.
4. Positions: you should always have a long or short position in a currency that is quoted $/currency, and another that is quoted currency/$. Trade significant amounts of your capital.
5. If you go to the POSITION tab on the web site, you will see your foreign currency positions in the “Position Value” column. Your aggregate account value (net of any trading) is on the top line as “Global Value”.
6. Final report: The final deliverable is a roughly 2 page (single-spaced) research report, including graphics, on any one currency tradeable on FTS – you also do not have to have traded the currency to write about it. Look online for the style of equity/bond/currency research reports. The report should explain, using the concepts we have discussed throughout the course (such as Balance of Payments, exchange rate regime, central bank activity, interest rate effects, investment climate, GDP growth, political considerations, etc.) why the currency is at the value it is now, and where you expect it to go in the future. This should be turned in through TURNITIN as one file. Please write it as if it is a professional research report, citing sources using any citation format you wish, but do not use quotes in the paper. Use only your own words. The case is due by 2pm on Sunday, March 6th. No extensions will be allowed because we will have another case assigned immediately after, so be sure to start the case well in advance so that you do not have any issues.
Navigating the FTS Platform
You may download the FTS platform software as follows:
Install the software (PC, or MAC with Windows emulator):
Once you have opened the software, use the FTS Real Time Client 18.104.22.168 (New) version of the software.
Choose “Download again before running.” Choose “Forex Case” with your name and password below.
You may alternatively use the online system, which has less functionality/reports, but you can trade and monitor your position. Select “FOREX CASE” for the Trading Case. You can access these pages via smartphone as well, so you can trade any time.
USER NAMES AND PASSWORDS ON OTHER SIDE
User Password Last Name First Name
BT1 BT1 Alix Sarah
BT2 BT2 Alongi Matthew
BT3 BT3 Aronowitz Hannah
BT4 BT4 Ashiagbor Kweku
BT5 BT5 Bass Noah
BT6 BT6 Belliveau Michael
BT7 BT7 Benacerraf Mizrahi Salomon
BT8 BT8 Bhojwani Rahul
BT9 BT9 Bin Yuslane Muhammed
BT10 BT10 Blaettler Jack
BT11 BT11 Blake Owen
BT12 BT12 Bolton Evan
BT13 BT13 Bou Hernandez Robinson
BT14 BT14 Bradshaw Patrick
BT15 BT15 Brady Kyle
BT16 BT16 Caldwell Frank
BT17 BT17 Carney Jack
BT18 BT18 Carson Nicholas
BT19 BT19 Chang Oscar
BT20 BT20 Chi Wei-Ching
BT21 BT21 Chiasson Stephanie
BT22 BT22 Clark Alexander
BT23 BT23 Conaton Tommy
BT24 BT24 Cortes Camacho Jose
BT25 BT25 Coutracos Nicholas
BT26 BT26 Dawit Dagmawi
BT27 BT27 Derolus Nathanael
BT28 BT28 Dietrich Corbinian