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| Preface | |
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| Acknowledgments | |
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| Trading Money | |
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| Introduction | |
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| Trading Money | |
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| The Roles Money Plays | |
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| The Major Currencies | |
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| Some Interesting Questions | |
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| Countries, Currencies, and ISO Codes | |
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| Markets, Prices, and Marketmaking | |
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| What Is a "Market"? | |
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| What Is a "Price"? | |
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| Buyers and Sellers | |
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| Marketmaking | |
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| Summary | |
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| Interest Rates | |
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| What Are "Interest Rates"? | |
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| Inflation | |
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| Day Count or Day Basis | |
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| Compounding | |
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| Discounting | |
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| Types of Interest Rates | |
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| Interest Rates in the Real World | |
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| Brief History of Foreign Exchange | |
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| Historical Background | |
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| The FX Markets Today | |
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| The Regulatory Environment and Central Bank Intervention | |
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| Summary | |
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| The Foreign Exchange Spot Market | |
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| The Spot Market | |
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| Spot FX Quoting Conventions | |
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| Economic Interpretation | |
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| Purchasing Power Parity | |
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| Cross Rates and Triangular Arbitrage in the Spot Market | |
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| The Bid-Ask Spread in Foreign Exchange | |
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| Timing | |
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| Settlement | |
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| Market Jargon | |
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| "The Best Arbitrage Around!" | |
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| Foreign Exchange Forwards | |
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| Introduction to Forwards and Forward Pricing | |
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| Foreign Exchange Forwards and Forward Pricing | |
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| Interest Rate Parity (Covered Interest Arbitrage) | |
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| FX Spot-Forward Arbitrage | |
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| FX Forward Price Quotes and Forward Points | |
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| Timing | |
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| Off-Market Forwards | |
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| Foreign Exchange Forwards in the Real World | |
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| Foreign Exchange Futures | |
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| Background | |
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| Futures versus Forwards | |
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| Foreign Exchange Futures Contract Specifications | |
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| Margin | |
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| Why Use Futures? | |
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| Options on FX Futures | |
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| Summary | |
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| Foreign Exchange Swaps or Cross-Currency Swaps or Cross-Currency Interest Rate Swaps or... | |
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| Introduction | |
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| FX Spot-Forward Swaps | |
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| Cross-Currency Swaps or FX Cross-Currency Interest Rate Swaps or FX Bond Swaps | |
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| Summary | |
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| Foreign Exchange Options | |
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| Option Basics | |
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| Equity Options | |
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| Put-Call Parity with Equity Options | |
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| In-the-Money, At-the-Money, and Out-of-the-Money | |
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| Theoretical Option Value and Option Risk Measures ("The Greeks") | |
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| Foreign Exchange Options | |
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| Put-Call Parity in Foreign Exchange | |
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| Perspective Matters | |
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| FX Option Premium | |
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| Volatility | |
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| Uses and Strategies | |
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| Theoretical Option Valuation | |
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| The Binomial Model | |
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| The Black-Scholes/Garman-Kohlhagen Model | |
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| The Garman-Kohlhagen Option Risk Measures or "Greeks" | |
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| Exotic Options and Structured Products | |
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| What Is an Exotic Option? | |
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| Nonstandard Options | |
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| Digital or Binary Options | |
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| Barrier Options | |
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| Other Exotic Options | |
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| FX-Linked Notes | |
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| The Economics of Exchange Rates and International Trade | |
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| Money versus Currency | |
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| Types of FX Exposures | |
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| Fixed versus Floating Exchange Rates | |
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| Implications of Monetary Policy | |
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| Trade Deficits: A Curse or a Blessing | |
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| Politics and Economics | |
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| Currency Crises | |
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| The End of Bretton Woods | |
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| Bankhaus Herstatt | |
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| The ERM Crisis of 1992 | |
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| The Asian Crisis of 1997 | |
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| The Russian Crisis of 1998 | |
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| The Turkish Lira Crisis of 2001 | |
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| The Argentinean Peso Crisis of 2002 | |
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| Summary | |
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| Technical Analysis | |
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| Introductio | |
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| What Is Technical Analysis? | |
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| Methods of Technical Analysis | |
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| Technical Analysis in Foreign Exchange | |
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| Technical Analysis Today | |
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| Summary | |
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| Where Do We Go From Here? | |
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| Conclusion | |
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| Precious Metals | |
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| Answers to the Chapter Exercises | |
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| Notes | |
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| References | |
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| About the Author | |
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| Index | |