All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source. |
SOUTH AFRICAN QUALIFICATIONS AUTHORITY |
REGISTERED UNIT STANDARD THAT HAS PASSED THE END DATE: |
Manage risk within a forex trading environment |
SAQA US ID | UNIT STANDARD TITLE | |||
117806 | Manage risk within a forex trading environment | |||
ORIGINATOR | ||||
SGB Insurance and Investment | ||||
PRIMARY OR DELEGATED QUALITY ASSURANCE FUNCTIONARY | ||||
- | ||||
FIELD | SUBFIELD | |||
Field 03 - Business, Commerce and Management Studies | Finance, Economics and Accounting | |||
ABET BAND | UNIT STANDARD TYPE | PRE-2009 NQF LEVEL | NQF LEVEL | CREDITS |
Undefined | Regular | Level 5 | Level TBA: Pre-2009 was L5 | 18 |
REGISTRATION STATUS | REGISTRATION START DATE | REGISTRATION END DATE | SAQA DECISION NUMBER | |
Passed the End Date - Status was "Registered" |
2004-08-11 | 2007-08-11 | SAQA 0355/04 | |
LAST DATE FOR ENROLMENT | LAST DATE FOR ACHIEVEMENT | |||
2008-08-11 | 2011-08-11 |
In all of the tables in this document, both the pre-2009 NQF Level and the NQF Level is shown. In the text (purpose statements, qualification rules, etc), any references to NQF Levels are to the pre-2009 levels unless specifically stated otherwise. |
This unit standard does not replace any other unit standard and is not replaced by any other unit standard. |
PURPOSE OF THE UNIT STANDARD |
This Unit Standard is for learners working in the FOREX section of a bank and will enable them to assess risk by taking into consideration all implications associated with trading and trade currencies and to manage risk in a foreign exchange environment.
Persons credited with this Unit Standard are able to: |
LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING |
It is assumed that learners are competent in:
|
UNIT STANDARD RANGE |
N/A |
Specific Outcomes and Assessment Criteria: |
SPECIFIC OUTCOME 1 |
Apply risk management techniques. |
OUTCOME RANGE |
Risk management strategies include money management which includes areas such as portfolio makeup, diversification, how much money to invest in any one market, the use of stop losses and whether to trade conservatively or aggressively. Price Forecasting indicates which way a market is expected to trend and determines whether the market is bullish or bearish and trading tactics or timing determines specific entry and exit points and is entirely technical in nature. |
ASSESSMENT CRITERIA |
ASSESSMENT CRITERION 1 |
The risk elements associated to the various steps in currency trading transactions are identified, analysed and applied according to the types of currencies being traded |
ASSESSMENT CRITERION 2 |
The risk strategies associated with foreign exchange transactions are identified, analysed, planned and applied according to the types of currencies being traded |
ASSESSMENT CRITERION 3 |
The impact of various risk management strategies are identified and analysed according to the types of currencies being traded |
SPECIFIC OUTCOME 2 |
Identify psychological factors associated with trading. |
OUTCOME RANGE |
Situations include trading for an income, continuous losses, fatigue, stress, third party interventions, disruptions and distractions |
ASSESSMENT CRITERIA |
ASSESSMENT CRITERION 1 |
The role and attitude of professional players which impact trading in the foreign exchange markets are assessed and analysed through a documented case study |
ASSESSMENT CRITERION 2 |
Situations that induce stress and impact on the quality and outcome of the trading function are identified and reported on as per trading procedures |
ASSESSMENT CRITERION RANGE |
Situations include trading for an income, continuous losses, fatigue, stress, third party interventions, disruptions and distractions |
ASSESSMENT CRITERION 3 |
Trading principles identified according to foreign exchange rules and regulations as laid down by the Financial Services and Markets Act and the FAIS Bill are explained with examples from the organisation. |
ASSESSMENT CRITERION RANGE |
Trading procedures and foreign exchange rules and regulations include the FAIS Bill, the Financial Market Controls Act, and South African Reserve Bank rules and regulations for Foreign Exchange Control |
ASSESSMENT CRITERION 4 |
Fluctuations in performance levels, as compared to defined performance standards are identified and recorded in a trading plan |
SPECIFIC OUTCOME 3 |
Identify risk implications in relation to the currencies being traded. |
OUTCOME RANGE |
Risk analysis and the steps related thereto includes money management, price forecasting and trading tactics |
ASSESSMENT CRITERIA |
ASSESSMENT CRITERION 1 |
The concept of limit is explained from a risk perspective |
ASSESSMENT CRITERION 2 |
The implications of financial risks are identified according to the types of currencies being traded |
ASSESSMENT CRITERION 3 |
Inconsistencies in trading procedures are identified and the necessary steps taken to overcome these |
ASSESSMENT CRITERION 4 |
Buying and selling opportunities are identified against risk implications of the types of currencies being traded |
SPECIFIC OUTCOME 4 |
Control and manage cash flow. |
ASSESSMENT CRITERIA |
ASSESSMENT CRITERION 1 |
A cash flow forecast is drawn up in relation to a trading plan and projected trading transactions |
ASSESSMENT CRITERION 2 |
Mechanisms for minimising risk at each stage of the transaction are implemented via a trading platform |
ASSESSMENT CRITERION 3 |
Due diligence procedures are applied as per range |
ASSESSMENT CRITERION RANGE |
Due diligence includes the planning and forecasting of money management, price forecasting and trading tactics |
ASSESSMENT CRITERION 4 |
Financial risks are identified and risk management measures applied according to how much money to risk per trade executed based on margin accounts/balances |
ASSESSMENT CRITERION 5 |
A contingency plan is drawn up and applied in order to manage and predict cash flow including the calculations of profits and losses and managing margin balances. |
ASSESSMENT CRITERION 6 |
The forecast is measured against actual contingency plans and implemented where necessary |
ASSESSMENT CRITERION RANGE |
Cash flow management includes money management techniques such as gearing, hedging, diversification, stop losses and profit limits |
UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS |
UNIT STANDARD ESSENTIAL EMBEDDED KNOWLEDGE |
UNIT STANDARD DEVELOPMENTAL OUTCOME |
N/A |
UNIT STANDARD LINKAGES |
N/A |
Critical Cross-field Outcomes (CCFO): |
UNIT STANDARD CCFO IDENTIFYING |
The learner will identify and solve problems associated with risk and possible losses |
UNIT STANDARD CCFO COLLECTING |
The learner will be able to collect, organise and critically evaluate information when evaluating and reporting on the focus of the foreign exchange trading markets, identifying the risk implications of trading and identifying the psychological implications of trading within the foreign exchange market |
UNIT STANDARD CCFO SCIENCE |
The learner will be able to use technology effectively and critically evaluate the currency market research; assessing the implications within the foreign exchange trading environment and identify the psychological implications of currency trading. |
UNIT STANDARD ASSESSOR CRITERIA |
N/A |
UNIT STANDARD NOTES |
Supplementary information:
Legal: The use of tasks and materials in the learning event plan must be done in the context of: Terminology: An understanding of terminology for foreign trading is required. Refer to Who Owns Whom's Dictionary of Stock Market Terms Publisher: PSG Online |
QUALIFICATIONS UTILISING THIS UNIT STANDARD: |
ID | QUALIFICATION TITLE | PRE-2009 NQF LEVEL | NQF LEVEL | STATUS | END DATE | PRIMARY OR DELEGATED QA FUNCTIONARY | |
Elective | 20185 | Further Education and Training Certificate: Banking | Level 4 | NQF Level 04 | Passed the End Date - Status was "Reregistered" |
2023-06-30 | BANKSETA |
Elective | 50481 | National Certificate: Financial Markets and Instruments | Level 6 | Level TBA: Pre-2009 was L6 | Passed the End Date - Status was "Reregistered" |
2023-06-30 | BANKSETA |
PROVIDERS CURRENTLY ACCREDITED TO OFFER THIS UNIT STANDARD: |
This information shows the current accreditations (i.e. those not past their accreditation end dates), and is the most complete record available to SAQA as of today. Some Primary or Delegated Quality Assurance Functionaries have a lag in their recording systems for provider accreditation, in turn leading to a lag in notifying SAQA of all the providers that they have accredited to offer qualifications and unit standards, as well as any extensions to accreditation end dates. The relevant Primary or Delegated Quality Assurance Functionary should be notified if a record appears to be missing from here. |
1. | AAR Trading and Projects (Pty) Ltd |
2. | Advanced Assessments and Training (Pty) Ltd |
3. | Africa Glory Empowerment Services |
4. | Assured Vocational Skills Institute (Pty) Ltd |
5. | Brainwave Project 707 Pty Ltd |
6. | Brainwave Projects 707 |
7. | Compuscan Academy |
8. | DC Academy |
9. | Delmas Development Centre |
10. | Fachs Business Consulting and Training |
11. | Gigimo Tourism Academy |
12. | Injabulo Home Grown Learning and Development Solutions |
13. | Lotus Academy Pty Ltd |
14. | Maharishi Invincibility Institute NPC |
15. | MAT 007 (PTY) LTD |
16. | Matibidi Raphela Investments (Pty) LTD |
17. | Novia One Group (Pty) Ltd |
18. | Octomate Education Pty Ltd |
19. | Octopus Training Solutions |
20. | Production Management Institute of Southern Africa (Pty) Ltd |
21. | RIAPHATHUTSHEDZA |
22. | SIGNA ACADEMY (PTY) LTD |
23. | Sinovuyolethu Trading (Pty) Ltd |
24. | The Graduate Institute of Financial Sciences (Pty) Ltd |
25. | The Institute of Literacy Advancement |
26. | THE SHERQ CENTRE OF EXCELLENCE PTY LTD |
All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source. |