NTISthis.com

Evidence Guide: FNSFMK510 - Prepare trading strategies for clients

Student: __________________________________________________

Signature: _________________________________________________

Tips for gathering evidence to demonstrate your skills

The important thing to remember when gathering evidence is that the more evidence the better - that is, the more evidence you gather to demonstrate your skills, the more confident an assessor can be that you have learned the skills not just at one point in time, but are continuing to apply and develop those skills (as opposed to just learning for the test!). Furthermore, one piece of evidence that you collect will not usualy demonstrate all the required criteria for a unit of competency, whereas multiple overlapping pieces of evidence will usually do the trick!

From the Wiki University

 

FNSFMK510 - Prepare trading strategies for clients

What evidence can you provide to prove your understanding of each of the following citeria?

Analyse client position, risks and needs

  1. Obtain and confirm client needs and objectives
  2. Obtain and analyse market and product data relevant to client needs and objectives
  3. Analyse market opportunities for client using appropriate analytical tools and methodologies
  4. Identify and justify trading opportunities for client as required
Obtain and confirm client needs and objectives

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Obtain and analyse market and product data relevant to client needs and objectives

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Analyse market opportunities for client using appropriate analytical tools and methodologies

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Identify and justify trading opportunities for client as required

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Develop trading strategy and manage risk in transactions

  1. Identify risks in strategy to both client and organisation
  2. Discuss risks with client and appropriate organisational personnel and make decision on whether to proceed or adjust strategy
  3. Finalise strategy in accordance with organisation’s policy, procedures and the legal and regulatory framework
Identify risks in strategy to both client and organisation

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Discuss risks with client and appropriate organisational personnel and make decision on whether to proceed or adjust strategy

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Finalise strategy in accordance with organisation’s policy, procedures and the legal and regulatory framework

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Execute trading strategies for client

  1. Agree and set entry and exit levels and conditions for proposed strategy
  2. Identify appropriate order types or limit types for executing strategy and confirm order details with client
  3. Undertake ongoing monitoring for client, including adjusting trading strategy where warranted
Agree and set entry and exit levels and conditions for proposed strategy

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Identify appropriate order types or limit types for executing strategy and confirm order details with client

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Undertake ongoing monitoring for client, including adjusting trading strategy where warranted

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Assessed

Teacher: ___________________________________ Date: _________

Signature: ________________________________________________

Comments:

 

 

 

 

 

 

 

 

Instructions to Assessors

Evidence Guide

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

Required Skills and Knowledge

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.