List the assessment methods to be used and the context and resources required for assessment. Copy and paste the relevant sections from the evidence guide below and then re-write these in plain English.
ELEMENT | PERFORMANCE CRITERIA |
Elements describe the essential outcomes. | Performance criteria describe the performance needed to demonstrate achievement of the element. |
1. Analyse client position, risks and needs | 1.1 Obtain and confirm client needs and objectives 1.2 Obtain and analyse market and product data relevant to client needs and objectives 1.3 Analyse market opportunities for client using appropriate analytical tools and methodologies 1.4 Identify and justify trading opportunities for client as required |
2. Develop trading strategy and manage risk in transactions | 2.1 Identify risks in strategy to both client and organisation 2.2 Discuss risks with client and appropriate organisational personnel and make decision on whether to proceed or adjust strategy 2.3 Finalise strategy in accordance with organisation’s policy, procedures and the legal and regulatory framework |
3. Execute trading strategies for client | 3.1 Agree and set entry and exit levels and conditions for proposed strategy 3.2 Identify appropriate order types or limit types for executing strategy and confirm order details with client 3.3 Undertake ongoing monitoring for client, including adjusting trading strategy where warranted |
Evidence of the ability to:
apply compliance requirements for organisational and industry financial trading procedures
analyse needs to develop appropriate strategies to suit circumstances using appropriate tools and techniques.
Note: If a specific volume or frequency is not stated, then evidence must be provided at least once.
To complete the unit requirements safely and effectively, the individual must:
compare and contrast financial products that can be traded
outline a range of analytical tools and methodologies that can be used to analyse market opportunities, including quantitative and qualitative approaches
determine the relevant financial risk management factors at a client and organisational level, and discuss how to incorporate these into the strategy
describe appropriate financial trading reporting procedures and documentation
detect which relevant financial trading systems need to be used for strategy developed.
Assessment must be conducted in a safe environment where evidence gathered demonstrates consistent performance of typical activities experienced in the financial markets field of work and include access to:
office equipment, technology, software and consumables
integrated financial software system and data.
Assessors must satisfy NVR/AQTF assessor requirements.