Trade (financial instrument)

Wikipedia open wikipedia design.

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.[1]

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)[2][better source needed]

See also[edit]


  1. ^ "What is Trading?". Retrieved 18 April 2018.
  2. ^ "Trade Life Cycle/Securities trade life cycle". Retrieved 18 April 2018.

This page is based on a Wikipedia article written by contributors (read/edit).
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.