Product Description

Praise for Foreign Exchange

"Tim Weithers starts by telling the reader that foreign exchange is not difficult, just confusing, but Foreign Exchange: A Practical Guide to the FX Markets proves that money is much more exciting than anything it buys. This useful book is a whirlwind tour of the world's largest market, and the tour guide is an expert storyteller, inserting numerous fascinating insights and quirky facts throughout the book."
-John R. Taylor, Chairman, CEO and CIO, FX Concepts

"The book reflects the author's doctorate from the University of Chicago, several years' experience as an economics professor, and, most recently, a very successful decade as an executive at a huge international bank. These fundamental ingredients are seasoned with bits of wisdom and experience. What results is a very tasty intellectual stew."
-Professor Jack Clark Francis, PhD, Professor of Economics and Finance, Bernard Baruch College

"In this book, Tim Weithers clearly explains a very complicated subject. Foreign Exchange is full of jargon and conventions that make it very hard for non-professionals to gain a good understanding. Weither's book is a must for any student or professional who wants to learn the secrets of FX."
-Niels O. Nygaard, Director of Financial Mathematics, The University of Chicago

"An excellent text for students and practitioners who want to become acquainted with the arcane world of the foreign exchange market."
-David DeRosa, PhD, founder, DeRosa Research and Trading, Inc., and Adjunct Professor of Finance, Yale School of Management

"Tim Weithers provides a superb introduction to the arcana of foreign exchange markets. While primarily intended for practitioners, the book would be a valuable introduction for students with some knowledge of economics. The text is exceptionally clear with numeric examples and exercises that reinforce concepts. Frequent references are made to the economic theory behind the trading practices."
-John F. O'Connell, Professor of Economics, College of the Holy Cross

Product Details

• Amazon Sales Rank: #122457 in Books
• Published on: 2006-07-11
• Original language: English
• Number of items: 1
• Binding: Hardcover
• 336 pages

From the Inside Flap
In today's global marketplace, there is a critical need for both individual and professional investors to become better acquainted with foreign exchange. As economies become more intertwined and currencies continue to fluctuate, we must understand and be able to evaluate the foreign exchange (FX) markets when dealing with a variety of concerns, from consumption decisions and investment portfolios to business and retirement plans.

Throughout his academic and professional financial careers, Tim Weithers has introduced thousands of people to the foreign exchange markets and empowered them to navigate this dynamic environment. Now, in Foreign Exchange: A Practical Guide to the FX Markets, Weithers shares his knowledge, insights, intuition, and many years of experience with you.

Blending theory and practice, this straightforward financial primer takes the technical information commonly associated with today's FX markets and makes it more accessible. First, you'll become familiar with some of the basic elements of foreign exchange—major currencies, bid-ask spreads, and the importance of interest rates—as well as gain some historical perspective on the evolution and development of the FX markets. After this introductory overview, you'll receive a detailed description of the products, techniques, and strategies that can be used to master the foreign exchange markets.

Topics discussed within the following pages include:

• The foreign exchange spot market
• FX forwards and futures
• Cross-currency interest rate swaps
• FX options, structured products, and exotic options
• The economics of exchange rates and international trade
• Currency crises
• Modern developments
• And much more

With this book as your guide, you'll also gain a solid understanding of how the FX market and its instruments work; acquire an ability to look beyond the noise of news reports and stories presented by the popular media and financial press; and learn how to avoid some of the most common mistakes made in today's FX markets.

Filled with in-depth insights and helpful recommendations, and backed by numerous examples and exercises, Foreign Exchange frames the FX market in practical economic terms that can help you make sense of this ever-evolving, and often confusing, environment.

From the Back Cover
Praise for Foreign Exchange

"Tim Weithers starts by telling the reader that foreign exchange is not difficult, just confusing, but Foreign Exchange: A Practical Guide to the FX Markets proves that money is much more exciting than anything it buys. This useful book is a whirlwind tour of the world's largest market, and the tour guide is an expert storyteller, inserting numerous fascinating insights and quirky facts throughout the book."
—John R. Taylor, Chairman, CEO and CIO, FX Concepts

"The book reflects the author's doctorate from the University of Chicago, several years' experience as an economics professor, and, most recently, a very successful decade as an executive at a huge international bank. These fundamental ingredients are seasoned with bits of wisdom and experience. What results is a very tasty intellectual stew."
—Professor Jack Clark Francis, PhD, Professor of Economics and Finance, Bernard Baruch College

"In this book, Tim Weithers clearly explains a very complicated subject. Foreign Exchange is full of jargon and conventions that make it very hard for non-professionals to gain a good understanding. Weither's book is a must for any student or professional who wants to learn the secrets of FX."
—Niels O. Nygaard, Director of Financial Mathematics, The University of Chicago

"An excellent text for students and practitioners who want to become acquainted with the arcane world of the foreign exchange market."
—David DeRosa, PhD, founder, DeRosa Research and Trading, Inc., and Adjunct Professor of Finance, Yale School of Management

"Tim Weithers provides a superb introduction to the arcana of foreign exchange markets. While primarily intended for practitioners, the book would be a valuable introduction for students with some knowledge of economics. The text is exceptionally clear with numeric examples and exercises that reinforce concepts. Frequent references are made to the economic theory behind the trading practices."
—John F. O'Connell, Professor of Economics, College of the Holy Cross

About the Author
TIM WEITHERS, PhD, was one of the members of the Education Department of the O'Connor Partnership, a legendary proprietary option trading firm, which is now part of UBS. As a Managing Director of Financial Markets Education for UBS, he teaches thousands of clients and employees every year through seminars and internal classes, and serves as a faculty member of the Graduate Program on Financial Mathematics at The University of Chicago.

Customer Reviews

Very informative, very readable
This book was exactly what I needed. I was familiar with forex futures, and I wanted to break into the cash forex market and possibly into currency options. This book gave me a clear explanation of the markets, including the conventions, the mechanics, the spot market, forex swaps, forex options, etc., and some of the factors which drive exchange rates (e.g., interest rates).

The book is very readable. Usually, this sort of thing puts me to sleep. But I knocked off a chapter per day, no problem. The author is a member of the UBS training department, and he clearly has experience explaining this topic to the uninitiated.

The math is quite light. Nothing more complicated than algebra, which is necessary to explain some pricing logic.

The book does not contain trading secrets. It is not a system for trading forex. It does not explain How I Made $1,000,000 Trading Forex. It will not help you pick a broker. It is not an exposition on the stochastic theory of forex pricing. It is, however, a clear explanation of the FX markets.

Basic FX knowledge
The book is good for someone with no exposure to FX markets and for those who want to get a handle on things like how rates are quoted, why digital options make sense etc. The only gripe I have about this book is that it is an introduction to the topic, and not an advanced exposition on FX models, etc. Otherwise it is well written.

Foreign Exchange is foreign no longer
The esteemed Dr. Weithers explains the foreign exchange market nuances with elan, wit and clarity. I would be very much suprised if this book is not considered the definitive work on the topic in the very near future. Brilliant, bold and insightful.
Kevin J. O'Mara