SAQA 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: 

Enhance work practices within the trading environment by the application of foreign exchange and trading knowledge 
SAQA US ID UNIT STANDARD TITLE
117805  Enhance work practices within the trading environment by the application of foreign exchange and trading knowledge 
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 4  NQF Level 04  15 
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 persons working in a foreign exchange environment.

Learners credited with this Unit Standard will be able to:
  • Apply the basic concepts of currency trading
  • Demonstrate an understanding of the various factors that influence foreign exchange markets
  • Analyse currency trends. 

  • LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING 
    It is assumed that the learners will be competent in:
  • Communication at NQF Level 3
  • Mathematical Literacy at NQF level 3
  • Computer Literacy at NQF Level 3
  • The Unit Standard entitled, "Operate systems to accommodate the defined situations within a trading environment". 

  • UNIT STANDARD RANGE 
    N/A 

    Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Apply the basic concepts of currency trading. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The history and the evolution of foreign exchange trading is understood and explained focussing on the Financial Services and Markets Act and the FAIS Bill 

    ASSESSMENT CRITERION 2 
    Participants in the foreign exchange markets are identified and their roles explained according to the trade executed. 

    ASSESSMENT CRITERION 3 
    Suitable operating procedures of the exchange are identified, selected and applied in the trading environment 

    ASSESSMENT CRITERION 4 
    The foreign exchange markets are identified and described according to the types of currencies being traded 

    ASSESSMENT CRITERION 5 
    The types of risk associated with the trading requirements are identified and analysed according to trade executed 
    ASSESSMENT CRITERION RANGE 
    Risk analysis includes 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 CRITERION 6 
    Currency trading terms are identified and their use explained using examples from the financial markets sector 
    ASSESSMENT CRITERION RANGE 
    Factors include spot trading, margin trading, margin calls, pip sizes, gearing, hedging and diversification
     

    ASSESSMENT CRITERION 7 
    The differences between the basic alternative approaches used in technical and fundamental analysis are explained with reference to the information required for each and the types of currencies being traded. 
    ASSESSMENT CRITERION RANGE 
    Alternative approaches include fundamental and technical analysis
     

    SPECIFIC OUTCOME 2 
    Demonstrate a basic understanding of the various factors that influence foreign exchange markets. 
    OUTCOME RANGE 
  • Fundamental analysis includes a basic understanding of why certain events took place, thereby obtaining an insight to the cause and effects which impact on financial markets
  • Technical analysis includes looking for changes in supply and demand through market signals and indicators 

  • ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    Expectations and current market sentiment are determined via reference to published economic statistics and financial data. 

    ASSESSMENT CRITERION 2 
    The impacting variables are determined according to economic statistics 

    ASSESSMENT CRITERION 3 
    Events surrounding market sentiment and expectations are identified, tracked and analysed to determine their market impact 

    ASSESSMENT CRITERION 4 
    Analysis is conducted by examining and analysing indicators used by technical and fundamental traders 

    ASSESSMENT CRITERION 5 
    Various fundamental and technical terms are identified and analysed to determine the most appropriate methods of trading various currencies 

    SPECIFIC OUTCOME 3 
    Analyse currencies traded. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    Trading techniques are identified and analysed in accordance with fundamental or technical analyses 

    ASSESSMENT CRITERION 2 
    The various Forex quotations and transactions are identified and analysed according to specific currencies being traded 

    ASSESSMENT CRITERION 3 
    The procedure for generating profits is identified and analysed for each currency type during the trading process 

    ASSESSMENT CRITERION 4 
    Risk, including money exposure is identified and analysed to avoid future problems 

    ASSESSMENT CRITERION 5 
    Currencies to be traded are identified based on their current and future strength 


    UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS 
  • An individual wishing to be assessed (including through RPL) against this Unit Standard may apply to an assessment agency, assessor or provider institution accredited by the relevant ETQA, or an ETQA that has a Memorandum of Understanding with the relevant ETQA.
  • Anyone assessing a learner against this Unit Standard must be registered as an assessor with the relevant ETQA or with an ETQA that has a Memorandum of Understanding with the relevant ETQA
  • Any institution offering learning that will enable achievement of this Unit Standard or assessing this Unit Standard must be accredited as a provider with the relevant ETQA or with an ETQA that has a Memorandum of Understanding with the relevant ETQA
  • Moderation of assessment will be conducted by the relevant ETQA at its discretion. 

  • UNIT STANDARD ESSENTIAL EMBEDDED KNOWLEDGE 
    A demonstrated understanding of:
  • The terminology relating to the Foreign exchange markets and instruments in respect of currency language
  • The basic theories of fundamental analysis including macro economic indicators
  • The basic theories of technical analysis including price forecasting and trading tactics
  • The basic theories of money management
  • The FAIS (Financial Advisory and Intermediary Services) Bill
  • The Financial Services Association
  • The Reserve Bank rules and regulations for exchange control
  • The Financial Markets Control Act 

  • UNIT STANDARD DEVELOPMENTAL OUTCOME 
    N/A 

    UNIT STANDARD LINKAGES 
    N/A 


    Critical Cross-field Outcomes (CCFO): 

    UNIT STANDARD CCFO IDENTIFYING 
    The learner will be able to identify and solve problems and display responsible decision-making by using models to integrate trading principles to conduct foreign exchange trading. 

    UNIT STANDARD CCFO COLLECTING 
    The learner will be able to collect, organise and critically evaluate information to establish a comprehensive understanding of the foreign exchange markets and analyse currencies based on risk factors identified 

    UNIT STANDARD CCFO COMMUNICATING 
    The learner will be able to communicate effectively using visual, mathematical and language skills in oral and written form to analyse foreign currencies 

    UNIT STANDARD CCFO SCIENCE 
    The learner will be able to use technology effectively and critically in analysing basic foreign exchange principles in fundamental and technical analysis. 

    UNIT STANDARD CCFO DEMONSTRATING 
    The learner will be able to demonstrate an understanding of the world foreign exchange markets as a set of related systems and recognise that problem-solving contexts pertaining to the foreign exchange markets do not exist in isolation 

    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:
  • The FAIS (Financial Advisory and Intermediary Services) Bill
  • The Financial Services Association
  • The Reserve Bank rules and regulations for exchange control
  • The Financial Markets Control Act

    Terminology:
    Reference: "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  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. Absa Learning & Development 
    2. Bidvest Bank 
    3. Chartall Business College 
    4. Cornerstone Performance Solutions (Pty) Ltd 
    5. Felix Risk Training Consultants 
    6. Firstrand Bank - Benmore 
    7. Nedbank Ltd 
    8. The Facilitation Workshop 



    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.