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## Book Description

An essential guide to real-world derivatives trading

FX Derivatives Trader School is the definitive guide to the technical and practical knowledge required for successful foreign exchange derivatives trading. Accessible in style and comprehensive in coverage, the book guides the reader through both basic and advanced derivative pricing and risk management topics.

The basics of financial markets and trading are covered, plus practical derivatives mathematics is introduced with reference to real-world trading and risk management. Derivative contracts are covered in detail from a trader's perspective using risk profiles and pricing under different derivative models. Analysis is approached generically to enable new products to be understood by breaking the risk into fundamental building blocks. To assist with learning, the book also contains Excel practicals which will deepen understanding and help build useful skills.

The book covers of a wide variety of topics, including:

• Derivative exposures within risk management

• Volatility surface construction

• Implied volatility and correlation risk

• Practical tips for students on trading internships and junior traders

• Market analysis techniques

• FX derivatives trading requires mathematical aptitude, risk management skill, and the ability to work quickly and accurately under pressure. There is a tremendous gap between option pricing formulas and the knowledge required to be a successful derivatives trader. FX Derivatives Trader School is unique in bridging that gap.

1. Title Page
3. Dedication
4. Preface
5. Acknowledgments
6. Part I: The Basics
1. Chapter 1: Introduction to Foreign Exchange
2. Chapter 2: Introduction to FX Derivatives
3. Chapter 3: Introduction to Trading
4. Practical A: Building a Trading Simulator in Excel
5. Chapter 4: FX Derivatives Market Structure
6. Chapter 5: The Black-Scholes Framework
7. Practical B: Building a Numerical Integration Option Pricer in Excel
8. Chapter 6: Vanilla FX Derivatives Greeks
9. Practical C: Building a Black-Scholes Option Pricer in Excel
10. Chapter 7: Vanilla FX Derivatives Pricing
11. Chapter 8: Vanilla FX Derivatives Structures
12. Chapter 9: Vanilla FX Derivatives Risk Management
13. Chapter 10: Vanilla FX Derivatives Miscellaneous Topics
14. Practical D: Generating Tenor Dates in Excel
7. Part II: The Volatility Surface
1. Chapter 11: ATM Curve Construction
2. Practical E: Constructing an ATM Curve in Excel
3. Chapter 12: Volatility Smile Market Instruments and Exposures
4. Practical F: Constructing a Volatility Smile in Excel
5. Chapter 13: Probability Density Functions
6. Practical G: Generating a Probability Density Function from Option Prices in Excel
8. Part III: Vanilla FX Derivatives Trading
1. Chapter 14: Vanilla FX Derivatives Trading Exposures
2. Chapter 15: Vanilla FX Derivatives Trading Topics
3. Chapter 16: ATM Volatility and Correlation
4. Chapter 17: FX Derivatives Market Analysis
9. Part IV: Exotic FX Derivatives
1. Chapter 18: Exotic FX Derivatives Pricing
2. Chapter 19: FX Derivatives Pricing Models
3. Chapter 20: Exotic FX Derivatives Product Classification
4. Chapter 21: European Digital Options
5. Chapter 22: European Barrier Options
6. Chapter 23: Touch Options
7. Chapter 24: American Barrier Options
8. Chapter 25: Exotic FX Derivatives Trading Topics
9. Chapter 26: Window Barrier and Discrete Barrier Options
10. Practical H: Building a Monte Carlo Option Pricer in Excel
11. Chapter 27: Vanilla Variations
12. Chapter 28: Accrual and Target Redemption Options
13. Chapter 29: Asian Options
14. Chapter 30: Multi-Asset Options
15. Chapter 31: Miscellaneous Options