What is a Trading Plan? A trading plan refers to a systematic approach used to identify and trade securities based on several variables, such as investment objectives, risks, and time. A trading plan lays out procedures and conditions under which to search for asset classes and execute trades. The underlying elements of a trading plan…
What is a Trading House? A trading house is a business that facilitates trade between two countries – i.e., a foreign country and a home country. It provides a service that eliminates trading barriers to enter into foreign markets, especially for small companies with limited resources or import or export capability. Trading houses promote both…
What is a Trading Desk? A trading desk is a department within a company or investment bank where securities are sold and purchased to provide market liquidity. Some of the securities traded on trading desks include stocks, bonds, commodities, and currencies. Firms with trading desks can add value to their portfolio by supplying expertise in…
What is a Trading Platform? A trading platform is an online trading system that uses computer software to execute trades in a networked environment. Trading platforms can be utilized for free or at a discount, depending on the financial intermediary. With trading platforms, traders and/or investors can maintain funded accounts and conduct securities trades. The…
What is a Trading Curb? A trading curb is a temporary trading halt imposed in an effort to reduce market volatility and massive panic sell-offs. It is also called a circuit breaker and is instituted to reduce market volatility and information asymmetry by giving traders enough time to respond with full information. Amid extreme market…
What is a Trading Channel? A trading channel is a chart pattern highlighted by two parallel lines bordering resistance and support within which a security trades during a period. Within a valid uptrend trading channel, an opportunity to buy into the uptrend is indicated by subsequent bounces up off the support level at the point…
What is Trading Authorization? Trade authorization is the level of power or authority extended to a broker or an agent by a client to execute all transactions, thereby establishing accountability of the trading accounts and assets. The trading authorization concept is relatively similar to a power of attorney and is established before a new agent…
What is a Trading Account? A trading account is an online investment account that traders use to purchase securities and monitor trades. It allows investors to buy and sell securities such as shares, commodities, foreign exchange, etc., in the public market. A trading account may also refer to a primary account for a day trader….
What are Trading Assets? Trading assets are securities that firms hold to resell for profit, rather than holding them for investment. They include different account components from the investment portfolio. Trading assets may include bonds and other fixed-income securities, positive market values from derivative financial instruments, foreign exchange rate contracts, as well as equity shares…
What is Technocracy? Technocracy is a form of government where people with immense knowledge in science and/or with technical expertise in an area, are elected to public office. The decision-makers are known as technocrats, and they are appointed or elected to hold office based on their expertise in a given field of knowledge. Consequently, the…
