Overview of Trading Operations
Trading operations refer to the processes, systems, and activities involved in executing, managing, and settling trades in financial markets (e.g., stocks, bonds, derivatives, forex, or cryptocurrencies). These operations are critical for ensuring trades are completed efficiently, accurately, and in compliance with regulations. Below are the key components:
Trade Execution:
Order Placement: Traders (individuals, institutions, or algorithms) place buy or sell orders through platforms like stock exchanges (e.g., NYSE, NASDAQ), brokers, or electronic trading systems.
Order Types: Includes market orders (executed immediately at current prices), limit orders (executed at a specific price), or stop orders (triggered by price thresholds).
Market Access: Operations involve connecting to markets via brokers, direct market access (DMA), or trading platforms (e.g., MetaTrader, Thinkorswim).