Course 13 of 20 · Coffee Desk Academy

FX & Combined Exposure

Stage C, Basis, futures and currency. Level 7 of 10.

Measuring and hedging the currency exposure created by local currency origin purchases, dollar denominated futures and non-dollar sales, and combining currency and price exposure into one position view.

118 chapters · 11 modules · every chapter one 8 to 10 minute explainer · builds on: Course 06, Course 08, Course 11, Course 12

Enrol or enquire See the 118 chapters
How a chapter is delivered

One chapter is one idea taken to the point of use

Each chapter covers one idea to the point where you can use it, and comes two ways: a narrated explainer, and a deep dive audio discussion of around thirty minutes that works the same material at depth.

Self-paced throughout, and the same chapters can be taught as a cohort. Chapters run in order: each one assumes only what the chapters before it taught, and capability belonging to a later course is named and deferred rather than half-covered.

Curriculum

11 modules · 118 chapters

Open any module for its full chapter list, in teaching order.

M0 Three Currencies in One Coffee Trade Ch 1-10
  1. The Money a Coffee Trade Actually Moves In
  2. Price Risk and Currency Risk Are Not One Position
  3. The Reporting Money That Anchors Every Sign
  4. Why an Exchange Hedge Is Neutral for Some Desks Only
  5. Cash That Converts Against Balances Merely Restated
  6. Hedges and Finance Lines Taken as Already Settled
  7. Four Moments a Coffee Desk Takes On Money Risk
  8. Money Risk With No Coffee Attached to It
  9. Funding in One Money, Trading in Another
  10. What a Rate Error Costs a Thin Coffee Margin
M1 Naming a Pair and Getting the Direction Right Ch 11-20
  1. Writing a Rate as Units of One Money per Another
  2. Why the Real and the Euro Are Quoted in Opposite Orders
  3. The Sentence That Removes Doubt About Direction
  4. An Unpaid Local Obligation Is a Short in That Money
  5. A Receivable in Local Money Is a Long in That Money
  6. When a Local Price Is a Dollar Price in Disguise
  7. A Flat Local Number Against a Converted One
  8. The Cross Rate Between Two Non-Dollar Legs
  9. Reading a Forward Quotation Without Inverting It
  10. The Direction Test Run Across a Mixed Coffee Book
M2 The Origin Money Leg Ch 21-31
  1. From a Cooperative Payment Schedule to a Position
  2. Dating the Origin Leg Instead of Totalling It
  3. An Advance Paid Before the Coffee Exists
  4. Quality Adjustments That Move a Local Money Amount
  5. Local Money Cover Where a Forward Market Exists
  6. When the Origin Money Cannot Be Covered Outright
  7. Non-Deliverable Forwards as an Instrument, Not a Promise
  8. Two Prices for the Same Money, Onshore and Off
  9. Whether Dollar Pricing at Origin Removes the Leg
  10. An Ethiopian Purchase With a Surrender Requirement
  11. The Origin Leg Stated as One Line per Money
M3 The Dollar Leg: Futures, Margin and Variation Cash Ch 32-41
  1. Both Coffee Contracts Settle in Dollars
  2. Initial Margin as a Dollar Balance to Be Funded
  3. Variation Cash as a Flow of Unknown Size
  4. The Mark Restated Against the Margin Cash Converted
  5. Collateral Held in a Money the Clearer Will Not Take
  6. A Euro Reporting Desk Short the Arabica Contract
  7. Covering the Equity, Not the Contract Notional
  8. The Roll Seen Only as a Money Event
  9. Two Exchanges, Two Cities, One Settlement Money
  10. The Exchange Side Stated as One Reportable Figure
M4 The Sale Money Leg Ch 42-51
  1. Invoicing a Roaster in Its Own Money
  2. A Yen Sale Standing Against a Dollar Hedge
  3. Converting the Differential Into the Sale Money
  4. The Sterling Offer a Merchant Must Hold Firm
  5. A Sale in a Money With No Reachable Forward
  6. Value Date on the Receipt, Not on the Invoice
  7. Deductions That Change the Amount Received
  8. A Buyer Electing Its Invoicing Money Each Shipment
  9. The Sale Leg Reduced to One Line per Money
  10. Three Roaster Contracts in Three Monies, Compared
M5 Instruments That Move Money Risk Around Ch 52-62
  1. Matching Flows Rather Than Hedging Them
  2. The Outright Forward Against One Dated Leg
  3. Extending Cover When the Shipment Slips
  4. The Swap Read as Two Dated Exchanges
  5. Why the Covered Amount Is Not the Invoiced Amount
  6. Partial Cover Treated as a Deliberate Position
  7. Currency Optionality Kept Deliberately Small
  8. Offsets Already Sitting Inside a Coffee Book
  9. Covering a Cross Without Two Dollar Tickets
  10. A Hedge Placed by Treasury, a Position Owned by the Desk
  11. A Correctly Covered Leg That Still Loses Money
M6 Building the Combined Position View Ch 63-74
  1. One Statement the Whole Desk Can Argue From
  2. One Leg, One Row, One Entry per Column
  3. The Columns the Statement Has to Carry
  4. The Row Types a Coffee Desk Actually Holds
  5. Keeping Bags Apart From Money on the Page
  6. Naming the Reporting Money at the Top of the Page
  7. Restated Values and Original Notionals Side by Side
  8. The Unfixed Slot Left Deliberately Empty
  9. Dating Every Row to the Day Money Moves
  10. Where the Differential Belongs on the Statement
  11. A First Statement Built From Four Legs
  12. Reading the Statement Down One Money Column
M7 Double Counting and the Missing Leg Ch 75-85
  1. The Defect This Statement Exists to Catch
  2. The Case Introduced: Three Monies and Four Tickets
  3. Covered Twice: What Each Seat Believed
  4. Finding the Duplicate by Counting Rows
  5. A Price Hedge That Created Money Risk as a Side Effect
  6. The Cross Nobody Thought to Cover
  7. The Missing Leg: Variation Cash Nobody Owned
  8. The Case Restated on One Correct Statement
  9. Netting Two Rows That Only Look Alike
  10. Gross and Net Positions Printed Together
  11. Two Statements That Disagree, and the Reconciliation Between
M8 Reading, Reconciling and Reporting the View Ch 86-96
  1. Tying the Price Column to the Broker Position Report
  2. Tying the Money Columns to the Forward Book
  3. Tying the Dated Rows to the Cash Forecast
  4. Reading the Statement Across One Shipment Month
  5. The Walk From Yesterday's Statement to Today's
  6. Explaining a Profit Move to Someone Who Did Not Trade It
  7. Who Receives This Statement and What They Do With It
  8. One Book Reported in Two Monies at Once
  9. Which Rows Justify Intraday Maintenance
  10. Controls That Stop a Row Going Missing
  11. A Statement Resting on Rates Nobody Has Fixed Yet
M9 A Worked Combined Position From End to End Ch 97-108
  1. The Book: Six Legs Across Three Origins
  2. Part One: The Brazilian Purchase Dated and Converted
  3. Part Two: The Colombian Purchase With a Provisional Amount
  4. Part Three: The Vietnamese Purchase With No Clean Forward
  5. Part Four: Two Futures Hedges and Their Dollar Rows
  6. Part Five: The Euro Sale and the Yen Sale
  7. Part Six: The Facility Drawn in Dollars
  8. Assembling Six Legs Onto One Page
  9. The Duplicate That Assembly Revealed
  10. The Open Cross That Assembly Revealed
  11. Reading the Finished Statement Aloud
  12. The Fields the Simulation Will Ask For First
M10 The Sign Audit and the Limits of One View Ch 109-118
  1. The Sign Audit Run as a Separate Pass
  2. Running the Audit on the Worked Book
  3. The Eight Words That Invert a Money Row
  4. Buy and Sell Read From the Wrong Side of the Ticket
  5. Pay and Receive Confused on a Swap Leg
  6. A Checklist Read Against the Statement Row by Row
  7. Exposure Measured Is Not Exposure Survived
  8. A Correct Statement on a Questionable Fixing Source
  9. Decisions the Statement Informs but Does Not Make
  10. The Money Dimension of Business Not Yet Priced

The brochure gives each of these 118 chapters a paragraph on what it covers and what you can do once you have worked through it.

This is course 13 of twenty

It stands alone, and it is also the entry point to the Coffee Desk Academy pathway.

Enrol or enquire See the whole pathway