#TradingOperations101 š Trading Operations ā Quick Summary
Definition:
Trading operations refer to the processes and systems used to buy, sell, settle, and manage financial securities like stocks, bonds, derivatives, and currencies.
š§ Key Components
Front Office ā Trading & Strategy
Executes trades (e.g., stocks, forex)
Manages client orders and risk
Middle Office ā Risk & Compliance
Monitors trade risk, pricing, and legal compliance
Back Office ā Settlement & Recordkeeping
Confirms trades
Handles clearing, settlements, and reconciliations
š Trade Lifecycle (Simplified)
Order Placement ā
Execution ā
Confirmation ā
Clearing ā
Settlement
š¼ Used By:
Investment banks
Hedge funds
Asset managers
Retail brokers