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
Chapter three
- Description
and analysis of the existing system 10
- Method
of data collection 11
- Objective
of the existing system 11
- 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
Chapter five
5.0 Implementation 22
Chapter six
Chapter seven
Summary, recommendation and
conclusion 29
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.
DESIGN AND IMPLEMENTATION OF AN ONLINE FOREX INFORMATION SYSTEM A CASE STUDY OF FIRST BANK ENUGU
