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...