ABSTRACT
Information technology has done a lot in the field of banking work. A lot of tools have been developed to assist in the banking sector. This project work is concern in the design and implementation of an online forex information system used in first bank of Nigeria Enugu branch.
Forex
trading involves changing different currency to a particular currency. This has
been previously done by manual method. But this project is aimed at automating
our forex trading system to make the work easier. This is possible because of
the advance improvement in information technology as pertaining programming
language; because this is achieved by the help of visual basic programming
language.
TABLE OF CONTENT
Title page i
Approval page ii
Dedication iii
Acknowledgement iv
Abstract v
Table of content
Chapter one
1.0 Introduction 1
- statement
of the problem 2
- Purpose of study 3
- Aims and objective of the study 3
- Scope of study 4
- Constraints 4
- Assumptions 5
- Definition of terms. 5
Chapter two
- Literature review 7
Chapter three
- Description
and analysis of the existing system 10
- Method of data collection 11
- Objective of the existing system 11
- Organizational chart 12
- Input/process/output analysis 13
- Information flow diagram 15
Chapter four
Design of new system 16
- Output
specification and design 16
- Input specification and design 17
- File design 17
- Procedure chat 19
- System flowchart 20
Chapter five
5.0 Implementation 22
- Program
design 22
- Program flowcharts 24
- Pseudo code 25
Chapter six
- Documentation 27
Chapter seven
Summary, recommendation and conclusion 29
- Summary 29
- Recommendation 29
- Conclusion 30
CHAPTER ONE
INTRODUCTION
FOREX – the foreign exchange market or currency market or Forex is the market where one currency is traded for another. It is one of the largest markets in the world.
Some of the participants in this market are simply seeking to exchange a foreign currency for their own, like multinational corporations which must pay wages and other expenses in different nations than they sell products in. However, a large part of the market is made up of currency traders, who speculate on movements in exchange rates, much like others would speculate on movements of stock prices. Currency traders try to take advantage of even small fluctuations in exchange rates.
In the foreign exchange market there is little or no ‘inside information’. Exchange rate fluctuations are usually caused by actual monetary flows as well as anticipations on global macroeconomic conditions. Significant news is released publicly so, at least in theory, everyone in the world receives the same news at the same time.
Currencies are traded against one another. Each pair of currencies thus constitutes an individual product and is traditionally noted XXX/YYY, where YYY is the ISO 4217 international three-letter code of the currency into which the price of one unit of XXX currency is expressed. For instance, EUR/USD is the price of the euro expressed in US dollars, as in 1 euro = 1.2045 dollar.
Unlike stocks and futures exchange, foreign exchange is indeed an interbank, over-the-counter (OTC) market which means there is no single universal exchange for specific currency pair. The foreign exchange market operates 24 hours per day throughout the week between individuals with forex brokers, brokers with banks, and banks with banks. If the European session is ended the Asian session or US session will start, so all world currencies can be continually in trade. Traders can react to news when it breaks, rather than waiting for the market to open, as is the case with most other markets.
Average daily international foreign exchange trading volume was $1.9 trillion in April 2004 according to the BIS study.
Like any market there is a bid/offer spread (difference between buying price and selling price). On major currency crosses, the difference between the price at which a market maker will sell (“ask”, or “offer”) to a wholesale customer and the price at which the same market-maker will buy (“bid”) from the same wholesale customer is minimal, usually only 1 or 2 pips. In the EUR/USD price of 1.4238 a pip would be the ‘8’ at the end. So the bid/ask quote of EUR/USD might be 1.4238/1.4239.
This, of course, does not apply to retail customers. Most individual currency speculators will trade using a broker which will typically have a spread marked up to say 3-20 pips (so in our example 1.4237/1.4239 or 1.423/1.425). The broker will give their clients often huge amounts of margin, thereby facilitating clients spending more money on the bid/ask spread. The brokers are not regulated by the U.S. Securities and Exchange Commission (since they do not sell securities), so they are not bound by the same margin limits as stock brokerages. They do not typically charge margin interest, however since currency trades must be settled in 2 days, they will “resettle” open positions (again collecting the bid/ask spread).
Individual currency speculators can work during the day and trade in the evenings, taking advantage of the market’s 24 hours long trading day.
- STATEMENT OF THE PROBLEM
Although exchange rates are affected by many factors, in the end, currency prices are a result of supply and demand forces. The world’s currency markets can be viewed as a huge melting pot: in a large and ever-changing mix of current events, supply and demand factors are constantly shifting, and the price of one currency in relation to another shifts accordingly. No other market encompasses (and distills) as much of what is going on in the world at any given time as forex trading.
Supply and demand for any given currency, and thus its value, are not influenced by any single element, but rather by several. These elements generally fall into three categories: economic factors, political conditions and market psychology. This lead to the development of an online forex information system.
- PURPOSE OF STUDY
The main purpose of this project is to design a an online forex information system that will assist First bank in the processing of their customers’ forex trading issue
- AIMS AND OBJECTIVES
This project will have the following aims and objectives:
To shed light on the issue of an online forex information system.
To develop a program the will easy the calculation involved in the forex trading transaction
To suggest the ways in which an online forex information system can be enhanced.
To develop a program that will fasten the work of forex trading transaction.
To ensure adequate storage of forex trading transaction documents.
