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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. [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)

See also

References

  1. ^ "What is Trading?". tradimo.com. Retrieved 15 October 2019.