Concepts of Financial Market Trading
Summary Required Summary (200-250 words) Select a country of your choice, briefly describe most commonly traded financial markets and their importance to the economy, including an overview of the current economic position, the balance of trade and the role of the Central Bank.
Your answers to Tasks 1 & 2 must then relate to your chosen country.
Answers:
Task 1
700 Words
Evaluate the impact of your country’s economic cycle on the long- term trends of financial asset prices. You are required to provide examples to support your answer. (20 marks)
Task 2
700 words
Using your selected country, analyse how financial markets have been impacted by a recent political event. Include charts to illustrate your analysis. Your answer should include a brief outline of the political event at the start of your answer. (20 marks)
Task 3
1050 Words
(a) Analyse THREE different types of investment risk (15 marks) (b) Examine how the impact of each risk can be minimised (15 marks)
Answers:
Task 4
1050 Words
(a) Explain how and where options are traded. (10 marks) (b) Justify the use of options for speculation and hedging. You are required to provide examples to support your answer. (10 marks) (c) Explain the differences between the futures trading execution process and Over-the-Counter (OTC) trade execution. (10 marks)
