Trade (financial instrument)

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In finance, a trade is an exchange of a security (stocks, bonds, commodities, currencies, derivatives or any valuable financial instrument) for "cash", typically a short-dated promise to pay in the currency of the country where the 'exchange' is located. The price at which a financial instrument is traded, is determined by the supply and demand for that financial instrument.

Securities trade life cycle

1. Order initiation and execution. (Front office function)
2. Risk management and order routing. (Middle office function)
3. Order matching and conversion into trade. (Front office function)
4. Affirmation and confirmation. (back office function)
5. Clearing and Settlement. (back office function)

Video Trade (financial instrument)

See also

• Trader
• Stock exchange
• Online trading
• Online trading platform
• Online trading portal

Maps Trade (financial instrument)

References

Source of the article : Wikipedia