Foreign Trading System

ABSTRACT
The practice of currency trading is also commonly referred to as foreign exchange, Forex or FX for
short. All currency has a value relative to other currencies on the planet. Currency trading system
uses the purchase and sale of large quantities of currency to leverage the shifts in relative value
into profit. The online Foreign Currency Trading system is almost entirely a "spot" market. A
"spot" market means that the trading is made immediately or "on the spot". The settlement of those
Foreign Currency Trading spot transactions is made within two working days.
 List of figures:

• Use case diagram

• Activity diagram
• Class diagram
• Domain model
• Interaction diagram
• State chart diagram
• Package diagram
• Component diagram
• Deployment diagram

List of tables:

• Account details
• Renew details
• Cancellation details
INITIAL PHASE
1.1 Background to the Study
• Market fluctuation.
• Profit and loss.
• Overall performance.
1.2 Objective

1.2.1 General Objectives

To develop a Foreign Trade System.

1.2.2 Specific Objectives

• Foreign Trade system is used for faster online access by the users.

• To show how currency future covers ground in comparison with other

available derivative instruments and to provide awareness in market and attract
the investors.

1.3 Scope of project

• The online Foreign Currency Trading system enables you can have 24 hour
updates of your investment in currency from the convenience of your own
home.
• The Foreign Currency Trading system involves no exchange fees,
commissions and payments of that sort.
• The margin and leverage trading allows you to increase your earnings by up to
100 times more than regular currency trading. This means larger profits and
can benefit some investors.
• Currency Converter gives you accurate and instant foreign currency
conversions.
• The options are varied for minimum currency trading investments. There is
also mini account where with a very small initial investment in a leveraged
foreign currency, you can reach a high reward through minimal risk.

1.4 Schedule of the project

S.NO NAME OF THE PHASE DATE DAYS

1. Initial Phase Dec 20-Dec26 7

2. Analysis Phase Jan 10-Jan 16 7

3. Design phase Jan 31-Feb 6 7

1.5 Software Development methodology

1.5.1 Incremental Model

• The incremental model is an intuitive approach to the waterfall model.

• Multiple cycles take place here, making the lifecycle a “multi-waterfall” cycle.

• The product is defined as finished when it satisfies all of its requirements.

• This model combines he elements of the waterfall model with the iterative

1.5.2 Philosophy of prototyping

• It is a popular model software evolution used many commercial software companies

and system vendor.

• Incremental software development model may be applicable o projects where, software

requirements are well defined, but realization may be delayed.

• The basic software functionality is required earlier.

• Here cycles are divided up into smaller, more easily managed iterations.

• Each iteration passes through the requirements, design, implementations and testing
phases. it involves both development and maintenance.

• A working version of software is produced during the first iteration, so you have
working software earl on during the software life cycle.

• Subsequent iteration build on the initial software produced during the first iteration.
 Incremental Life Cycle Model

Advantages

• Generates working software quickly and early during the software life cycle.

• More flexible-less costly to change scope and requirements.

• Easier to test and debug during a smaller iteration.

• Easier to manage risk during its Iteration.

• Each iteration is an easily managed milestone.

• Each component is delivered to the client when it is complete. This allows partial
utilization of product and avoids long development time.

• This model of development also helps ease the traumatic effect of introducing
completely new system all at once.

1.6 Significance of the study

• It is mainly created to measure the market fluctuation.

• The knowledge you acquire through foreign currency trading will let you invest smartly.
• This improves the development of the organization

2. Analysis phase:
 2.1 Introduction:

This project emphasizes about the Foreign Trade System which is an

interface between the Account holder and the market. In the initial phase details about the
various currencies and the profit and loss of currency hold is collected. The project
comprises of several modules which also includes currency converter and program to
calculate profit and loss. The front end we use here is Visual basic 6.0 and the back end is
SQL Server 2000 with Microsoft Access.

2.2 Problem Statement:

System analysis is a logical process; the objective of this stage is not

actually to solve the problem but to determine what must be done to solve the problem. The
basis objective of this stage is to develop the logical model of the system using such as
UML. Let’s now take a look on existing and proposed system.

2.2.1 Existing System:

• Time consuming.
• More manual work.
• More complex.
• Involves exchange fees, commissions and payments etc.

2.2.2 Proposed System:

• Heightened sensibility to a large and continuously changing number of

factors.
• Accessibility to all traders in the major currencies.
• Guaranteed quantity and liquidity of the major currencies.
• Minimize manual data entry.

• Ensure the data accuracy’s.

• Ease of comfort.
• User friendliness and interactive.

2.3 Project information

 2.3.1Modules and Description

Login:

• The Login module contains the form which contain membership name and
member password.
• It includes Username and Password.

Trading Account Details:

• This form contains the information about account holder, market status,
currency held, trading histories, etc.

Buy:

• After the user logged in they can buy stocks online the user can buy stock only
it is available for buying.

Sell:

• After the user logged in they can sell stocks online , the user can sell his own
stocks only

Bank Account Database:

• After the trading is finished user has to select the type of transaction whether
credit card Demat account.

2.4 Environmental specification

2.4.1 Software requirements

• Operating System : Windows XP

• Front End : Visual Basic 6.0

• Back End : Microsoft SQL Server 2000

2.4.2 Hardware requirements

 • Processor : Intel Pentium 4
• Clock Speed : 3.08 GHz

• Keyboard : 104 Keys

• RAM : 1 GB

• Hard Disk : 320 GB

2.4.3 Functional requirements

• Login - Enter Username and Password.

• Market Status – Get status
• Buy – Buy stocks
• Sell – Sell stocks.
• Payment – credit / debit in bank account.

2.4.4 Non Functional requirements

• System should be fast enough to satisfy user.

• Trader access the market status frequently so as to decide which currency to hold and
which currency to sell.

• System should be available at any time.

2.5 Risk Management

2.5.1 Risk Identification

• If the system fails to update the currency details then unnecessary confusion may arrive.

• When the member may not register the form correctly. It may affect the login.

• Failure of Backup details.

2.5.2 Risk Monitoring

• Trader
 • Broker

2.5.3 Risk Avoidance

• With the online Foreign Currency Trading market you can have 24 hour updates of
your investment in currency from the convenience of your own home, so better
efficiency.
• All the details are related only between the Trader and the Broker. So no third person
can access or modify the data.
• The Broker has separate databases with large storage. Even backup copies for all the
entries are made for data security.

3.Design Phase
3.1 System Design
3.1.1 Architectural Design

3.2 Data Design

3.2.1 Data flow diagram

3.3 Conceptual design

3.3.1 Entity Relationship diagram

3.4 UML diagrams

 3.4.1 Use case model

Use Case Diagram

A/C Details

BankAuthority

DataBase

TradingA/C

Investor

Buy Broker

Sell

MarketAuthority Market Status

3.4.2 Business model

 Activity diagram -- Foreign Trading

Start

Enter A/C no
& Password

Authentication

Invalid
valid

Trading A/C
Details

Check Market
Status

Check Bank buy sell Check

A/c Details Trading A/C

if currency is
hold

if a/c balance >

trading a/c balance no

yes
yes
Invest
WithDraw

Update
BankDataBase

3.4.3 Domain model

 Class Diagram -- Foreign Trading

Investor Broker
A/C NO Buy Deals the
Login Password trading Sell Transaction
between the
submit() 1 1 renew() investor &
reset() trading() Bank
cancel() retrieve()

1 1

getDataBase
getStatus

1
1
Bank Authority Contain the
Market Authority A/C DataBase DB of the
Date accounts
CurrentPrice verify() related to the
update() Bank
SendStatus() cancel()
 Domain Diagram - Foreign Trading

Deals the
Investor trading Broker Transaction
A/C NO Buy between the
Login Password 1 1 Sell investor &
Bank
1 1

getStatus getDataBase

1
1 Contain the
Market Authority DB of the
Bank Authority accounts
Date
A/C DataBase related to the
CurrentPrice
Bank
3.4.3 Interaction diagram:

: Investor : Trading A/C : Bank Database : Investment : Trading Database : withdraw

submit (A/C no, password) : Market Authority

invalid,enter correct details

reset(A/C no,password)

checks(marketStatus)

Buy

bank A/C balance > trading A/C balance

insufficient balance

makeInvestment
updateBank A/C

sell

currency hold

notHeld

getAmount
updateTradingA/C
 COLLABORATION DIAGRAM

1: submit(A/C no,password)
3: reset(A/C no,password)

: Trading A/C

2: invalid,enter correct details

: Investor

7: insufficient balance
4: checks(marketStatus)
9: updateBank A/C

6: bank A/C balance > trading A/C balance

8: makeInvestment

: Investment

5: Buy
: Bank Database : Market Authority

10: sell

11: currency hold 14: updateTradingA/C

: Trading Database 13: getAmount
12: notHeld
3.4.4 State start

State Machine diagram -- Foreign Trading

Start

Logging
Trading
check details 1sec Verification valid 5ns
entry/ Username
entry/ A/C no entry/ A/C details
entry/ Password

not valid/enter correct details 5ns

view 5s ec not held 4sec

insufficient balance 4sec

Bank dataBase Market Sell 5ns Trading dataBase

Buy 5ns
Status
entry/ A/C details entry/ A/C details

checks 1 s ec checks 1s ec

Bank A/C balance > Currency

Trading A/C balance hold

m akeInves tm ent 8ns getAm ount 7ns

Investment Bank withdraw

Database
updateBank A / C 10ns updateTradingA / C 10ns

End
3.4.5 Package

Package Diagram -- Foreign Trading

User Interface

We have We are using

designed SQL for data
forms using storage
User VB
Interface
layer

Visual Basic SQL Web

Domain

Domain
market investor broker bank authority
Layer
authority

Technical Layer

Technical login trading update bank

Service layer
A/C
3.4.6 Deployment

3.4.7 Component