CHAPTER I

INTRODUCTION
1.1 OVER VIEW
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 for both the operation of the buyer and then the
operations of the seller to be considered.
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.
Purpose

The purpose of this project is to scientifically approach the foreign exchange

market, and to evaluate whether we can develop a strategy that can
automatically trade in the market successfully, and can outperform existing
basic strategies.
To first understand the various overall market conditions- trending,
directionless, and volatile.
This is crucial, since different trading strategies prove appropriate for
differing market conditions.

1.2 SCOPE OF THE PROJECT

The foreign exchange (forex) market is a financial market for trading
currencies. Trades are made in currency pairs, such as United States dollar and the
euro, in which equivalent amounts of money are exchanged. In addition, hedge
funds and investors may choose to trade in the forex market for profit, as
speculators, as the values of currency pair change.
The forex market is rapidly growing, and an important contributor to this is
the retail investor the individual speculator who trades currency pairs for profit,
either as a full-time job or for supplementary income. Technology and computers
play a key role in bringing these individuals to the forex market. 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.

PROBLEM STATEMENT:
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.
1.3 PRODUCTPERSPECTIVE
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 level of reward and it is get it through the
conceptual and satisfactory minimal risk.
External Interface Requirements:
The system uses the GUI Graphical User Interface for easy interaction with the customer. The
system maintains a relationship with the Rational Rose Tool. According to the code generated by the Rose
tool, the system is developed. This gives more sequential access for the functions and the functions can be
coded easily.
User Interfaces:
GUI is used in generating forms. The credit card processing system provides a good user interface. It is
more interactive with the user that the user can easily operate the system. This can be achieved by providing
the snap shots describing the functionality of the system. By viewing into the snap shots, the user can gain
better knowledge about the system.

Software Interface
Front End Client - The applicant and Administrator online interface is built using JSP
and HTML.

The Administrators local interface is built using Java.

Web Server-Glassfish application server (Oracle Corporation).
Backend- Oracle database.

Hardware Interface
The server is directly connected to the client systems. The client systems have
access to the
database and within the interface of the server and properly done the
interfaces.
1.4 DEFINITIONS AND ABBREVATIONS

Investor who are investing the amount to the bank account .

Bank authority-which is continuously checking the account details and
database.
Broker- doing the trading account, buy and sell the shares.
Market authority-updating the market status.
HTML - Mark-up Language used for creating web pages
J2EE Java 2 Enterprise Edition is a programming platform and it is the part
of the java platform for developing and running distributed java applications.
HTTP - Hyper Text Transfer Protocol. TCP/IP Transmission Control
Protocol/Internet
Protocol is the communication protocol used to connect hosts on the Internet.

TECHNOLOGIES TO BE USED
HTML
JSP
JavaScript
Java
XML
AJAX
TOOLS TO BE USED
Eclipse IDE (Integrated Development Environment)
Rational Rose tool (for developing UML Patterns)

1.5 SYSTEM FUNCTIONS

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 account.
1.6 USER CHARESTERISTICS
BUYER
After the user logged in they can buy stocks online the user can buy stock only. It is
available for buying.
SELLER
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 Debit account.
1.7 ENVIRONMENTAL SPECIFICATION
SOFTWARE FUNCTIONS

Front End Client - The investor and buyer online interface is built using JSP
and HTML. The buyers local interface is built using Java.

Web Server - Glassfish application server(Oracle Corporation).

Back End - Oracle database.

1.8 CONSTRAINTS

The investors require a computer to submit their information.

Although the security is given high importance, there is always a chance of
intrusion in the web world which requires constant monitoring.
The user has to be careful while submitting the information.

1.9: OVERALL DESCRIPTION:

Product Perspective:
The proposed foreign trading system is an on-line system. This system will provide an
online currency trading service for investors by taking in live feed in of international
currency status.
Product function

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.

CHAPTER 2
USE CASE DIAGRAM:
A use-case diagram is a graph of actors, a set of use cases enclosed by a
system boundary, communication associations between actors and the use cases
and generalization among use cases. Use cases are text documents, not diagrams,
and use-case modeling is primarily an act of writing text, not drawing diagrams.
USE CASE MODELLING DESCRIPTION:
Use Case diagrams identify the functionality provided by the system (use cases),
the users who interact with the system (actors), and the association between the
users and the functionality. Use Cases are used in the Analysis phase of software
development to articulate the high-level requirements of the system.
The primary goals of Use Case diagrams include:

Providing a high-level view of what the system does.

Identifying the users ("actors") of the system.
Determining areas needing human-computer interfaces.

DEVELOP THE USECASE MODELING:

Use case diagrams identify the functionality provided by the system, the
users who interact with the system(actors),and the association between the users
and the functionality. Use cases are used in the analysis phase of the software
development to articulate the high level requirements of the system.
Basic Elements:
Actor
Actor is something with behavior, and is depicted using a stick figure. Actors are not
limited to humans. If a system communicates with another application, the that
application can also be considered an actor.
Use case
A Use case describes a sequence of actions that provide something of measurable
value to an actor. A use case is the functionality provided by the system.
Association
Associations are used to link Actors with Use cases, and indicate that an actor
participate in the use case in some form. Associations are depicted by a line
connecting the actor and the use case.

Fig 1: UML Use Case Model

Fig 2: UML Use Case Diagram

CHATER 3
CLASS DIAGRAM:
A class diagram in the Unified Modeling Language (UML) is a type of static
structure diagram that describes the structure of a system by showing the
system's classes, their attributes and operations.
A Class diagram in the UML gives an overview of the system by showing its classes
and the relationships among them. Class diagrams are static-they display what
interacts but not what happens when they do interact.
Basic Elements
1) Class
A class is a set of objects that share a common structure and common behavior. Its
represented by a rectangle divided into three parts: class name, attributes and
operations

2) Relationships
Relationships between classes are the connecting links. Relationships between
classes are generally represented in class diagrams by a line or an arrow joining the
two classes.
a) Dependency
If A depends on B then this is shown by a dashed arrow between A and B.
3) Association

There is an association between two classes if an instance of one class must know
about the other in order to perform its work. An association between A and B shown
by a line joining two classes.

4) Aggregation
Aggregation is the association in which one class belongs to the collection. If B
aggregates A, then A is the part of B.
5) Generalization
Generalization is an inheritance link indicating one class is a super class of the
other. A generalization has a triangle pointing to the super class .An inheritance
relationship is indicated in the UML by an arrow with a triangular arrow head
pointing towards to the general.

3.2 DRAWING UML CLASS DIAGRAM

Fig 3: UML CLASS DIAGRAM

CHAPTER 4
DEVELOPING UML ACTIVITY DIAGRAM
3.1 INTRODUCTION TO UML ACTIVITY DIAGRAM
Activity diagrams are used to document workflows in a system, from the business
level down to the operational level. The activity diagram is a variation of the state
diagram where the states represent operations, and the transition represent the
activities that happen when the operation is complete. The general purpose of
Activity diagrams is to focus on flows driven by internal processing vs. external
events.
Basic Elements
1) Activity states
Activity states mark an action by an object. The notations for these states are
rounded rectangles, the same notation as found in state chart diagrams.
2) Transition
When an activity state is completed, processing move to the other activity state.
Transitions are used to mark this movement and modeled using arrows.
3) Initial state
The initial state marks the entry point and the initial activity state. The notation for
the initial state is the same as in state chart diagrams, a solid circle. There can only
be one initial state diagram.
4) Final state
Final states mark the end of the modeled work flow. There can be multiple final
states on a diagram and these states are modeled using a solid circle surrounded by
another circle.
5) Synchronization bar
Activities often can be done in parallel. To split processing, or to resume processing
when multiple activities have been completed, synchronization bars are used. These
are modeled as solid rectangles, with multiple transactions going in and/or out.

4.2 DRAWING UML ACTIVITY DIAGRAM

Fig 4.1: UML ACTIVITY DIAGRAM

Login operation

Fig 4.2: UML ACTIVITY DIAGRAM

Trading account details

Fig 4.3: UML ACTIVITY DIAGRAM

Broker operations

Fig 4.4: UML ACTIVITY DIAGRAM

CHAPTOR 5
DEVELOPING UML INTERACTION DIAGRAM
5.1 INTRODUCTION TO UML INTERACTION DIAGRAM

Interaction diagram describes how group of objects are collaborated with each
other.
Two types of Interaction diagrams
1) SEQUENCE DIAGRAM
2) COLLABORATION DIAGRAM
SEQUENCE DIAGRAM
Sequence diagram document the interactions between classes to achieve a result,
such as a use case. Because UML is designed for object-oriented programming.
These communications between classes are known as messages. The sequence
diagram lists objects horizontally, and time vertically, and models these messages
overtime.
Basic Elements
1) object
An object has state, behavior, an identity object interact through there links to other
objects .the pictorial representation for an object is a class with pre fixed by the
object name and semicolon.

5.2 DRAWING UML SEQUENCE DIAGRAM

Fig5.1: UML SEQUENCE DIAGRAM

Log in operation

5.2: UML SEQUENCE DIAGRAM

Trading A/C details

5.3: UML SEQUENCE DIAGRAM

Broker operations

5.4: UML SEQUENCE DIAGRAM

CHAPTER 6
COLLABORATION DIAGRAM:
A collaboration diagram is similar to sequence diagram but the message in number
format. In collaboration diagram sequence diagram is indicated by the numbering of
the message. A collaboration diagram, also called a communication diagram or
interaction diagram. A sophisticated modeling tool can convert a sequence into a
collaboration diagram and vice versa. A collaboration diagram resembles a flow
chart that port ray the roles, functionality and behavior of the object as well as over
all operation of the of the system in the real time.

6.1 DRAWING COLLABORATION DIAGRAM:

Fig 6.1: UML Collaboration

Diagram

CHAPTER 7
DEVELOPING THE STATE CHART DIAGRAM
7.1 INTRODUCTION TO UML STATE CHART DIAGRAMS
A UML statement diagram illustrate the interesting events and states of an object
and the behavior of an object in reaction to the event transition are shown as
arrows, labeled with their events state are shown as rounded rectangles.
BASIC ELEMENTS
1) Events
An event is a significant or noteworthy occurrence
For examples: A telephone receiver is taken off the hook
2) States
A state is a condition of an object at a movement in a time, the time between
events
For example:
A telephone is in the state of being idle after the receiver is placed on the hook
and until it is taken off the hook.
3) Transitions
Transition is a relation between states that indicates that when an event occurs, the
object moves from the prior state to the subsequent state.
For example:
When the event off hook occurs, transition the telephone from idle to
active state.
4) Transition action
A transaction can cause a action to fire in a software implementation, this may
represent the invocation of a method of the class of the state chart diagram.

7.2 DRAWING THE UML STATE CHART DIAGRAM

Fig 7: UML State chart

Diagram

CHAPTER 8
DEVELOPING THE UML PACKAGE DIAGRAM
8.1 INTRODUCTION TO UML PACKAGE DIAGRAM
The logical architecture is the large scale organization of the software classes into
packages, systems and layers. Its called the logical architecture because theres no
decision about how these elements are deployed across different operating system
process or across physical computers in a network.
LAYER:
A layer is a very coarse grained grouping of classes, packages or subsystems that
has a cohesive responsibility for a major aspect of the system.
Layers are organized such that higher layers call upon services of lower layer, but
not normally vice versa.
Layered architecture is divided into
1) Strict layered architecture
2) Relaxed layered architecture
In strict layered architecture, a layer calls upon the services of thee layer directly
below it .This design is common in network protocol stacks, but not in information
systems, which usually have a relaxed architecture, in which a higher layer calls up
on several lower layers.
UML PACKAGE DIAGRAM:

It is used for designing logical architecture of the system using this package
we can group anything
Ex: classes, other packages
Nesting of packages is common in UML package diagram
Notation: Package name may be placed on the tag if the packages show
inner members or it is placed in the main folder if no members.
It is common to shoe dependency between packages so that developers can
see the large scale coupling in the system.
The UML dependency line is used for a dashed arrow line with a arrow
pointing towards the dependant on packages.
Packages are defined by 3 symbols
Embedded packages
UML fully qualified names
Circle cross symbol

8.2 DRAWING THE UML PACKAGE DIAGRAM

Fig 8: UML Package Diagram

8.3 IMPLEMENT THE TECHNICAL SERVICE LAYER

Technical services layer shows general purpose objects and subsystems that
provide supporting technical services, such as interfacing with a database or error
logging. These services are usually application-independent and reusable across
several systems. Technical service layer describes the relationship between different

actors, components of the software process for any admin seek the registration for
new members. So that the new visitor can login the website and search for book
and if need can buy it.

FORM 1

FORM 2

FORM 3

FORM 4

FORM 5

FORM 6

FORM 7

CHAPTER 9
IMPLEMENT THE USER INTERFACE LAYER
USER INTERFACE LAYER for Foreign Trading System
BUYER
After the user logged in they can buy stocks online the user can buy stock only. It is
available for buying.
SELLER
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 Debit account.
LOGIN
The Login module contains the form which contains 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.

CHAPTER 10
DEVELOPING THE IMPLEMENTATION DIAGRAMS
10.1 INTRODUCYION TO IMPLEMENTATION DIAGRAMS
Implementation shows the implementation phase of system development. Two
types of implementation diagrams:
i. Component diagram
ii. Deployment diagram
10.2 COMPONENT DIAGRAM
A component diagram depicts how the components are wired together to form
larger components and or software systems. Components are wired together by
using an assembly connector to connect the required interface of one component
with the provided interface of another component.

The components are slightly fuzzy thing.

It describes the module part of the system which encapsulates its
components.
It describes the behavior in terms of interface.
It is a design level perspective.

10.3 DOCUMENTATION OF COMPONENT DIAGRAM

The main component in the component diagram is foreign trading system. The
trader who come to do the trading process and administrator who manages all the
other processes is the sub components.

10.4 DRAWING THE UML COMPONENT DIAGRAM

Fig 10: UML Component Diagram

CHAPTOR 11
11.1 INTRODUCTION TO DEPLOYMENT DIAGRAM
A deployment diagram models the physical deployment of artifacts on nodes. The
nodes appear as boxes, and the artifacts allocated to each node appear as
rectangles within the boxes.
Nodes may have sub nodes, which
appear as nested boxes.

It has set of computational nodes

It is the physical deployment of software element.
Two types of computational nodes

i) Device node
It is the physical computing resource. And it has processing and memory services to
execute the software.
ii) EEN (Executive Environment Node)
It is the software computing resource that runs with a node. It provides services to
host and execute the software elements.

11.2 DOCUMENTATION OF DEPLOYMENT DIAGRAM

The processor in this diagram is the foreign trading system. The devices are the
trader and administrator who perform the main activities in the system.

Fig 11: UML Deployment Diagram

CHAPTER 12
CONCLUSION
This project is to scientifically approach the foreign exchange market, and to
evaluate whether we can develop a strategy that can automatically trade in
the market successfully, and can outperform existing basic strategies. As the forex
market and the number of individual retail investors grows, a new, successful
strategy is valuable to those seeking financial prosperity by trading currencies.
Our approach was to first understand the various overall market conditionstrending, directionless, and volatile. This is crucial, since different trading strategies
prove appropriate for differing market conditions. After determining the type of
market, we tested basic strategies and examined their performance. After
optimizing these systems, we discovered the best approach would be to develop our
own system, incorporating the most successful features from several strategies, and
come up with a strategy that greatly outperformed the basic ones we had tested.