Trading is a term that is used quite loosely in capital markets vernacular. The word implies committing capital and accepting risk to earn a return on capital. However, there are many different participants that commit capital for their respective firms. How does a market maker decide on their quote? Is a portfolio manager executing trades or do they execute the trade through their trading desk. What is the difference between a trading desk at a bank, at an asset manager and a NASDAQ broker-dealer?
This interactive one-day course answers these questions and demonstrates how market makers decide on a quote and manage their positions. How do market participants incorporate fundamental analysis and technical analysis in their decision making process? What are the risks of trading? The trading course analyzes reports that are required to manage the position as well as reports required by senior management. How is the risk controlled? The trading course concludes with the participants playing the role of a trader in a trading simulation.
Trading Course Objectives
By the end of the trading course, participants will be able to:
- Differentiate between market makers, end users, portfolio managers and proprietary traders
- Analyze the decision making process of traders
- Describe the different reports required at the board, senior management and desk levels
- Explain different risk measurements that may be used in different asset classes to help control risk
- Differentiate between qualitative and quantitative controls
Prerequisites: Fundamentals of the Capital Markets and equivalent backgrounds in fundamentals of fixed income and/or equity markets
Program Level: Intermediate
Advance Preparation: None
Recommended CPE Credits: 7
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