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: 

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:
  • Apply risk management techniques
  • Identify psychological techniques associated with trading
  • Identify risk implications in relation to the currencies being traded
  • Manage and control cash. 

  • LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING 
    It is assumed that learners are 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 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 
  • 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 
  • The terminology relating to the Foreign exchange markets and instruments in respect of currency language
  • The typical risk elements, categories and strategies associated with currency trading transactions
  • Typical psychological techniques and strategies associated with foreign trading
  • Basic cash flow forecasting and management techniques and strategies
  • Knowledge of statutory info as listed under legal requirements 

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

    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  Reregistered  2023-06-30  BANKSETA 
    Elective  50481   National Certificate: Financial Markets and Instruments  Level 6  Level TBA: Pre-2009 was L6  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. Full Value Financial Services (Pty) Ltd 
    8. Nedbank Ltd 
    9. The Academy of Financial Markets 
    10. The Institute of Literacy Advancement 



    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.