The trade lifecycle : behind the scenes of the trading process / Robert P. Baker.

Format:

Book

Author/Creator:

Baker, Robert P., 1966- author.

Series:

Wiley finance series.

Wiley Finance Series

Language:

English

Subjects (All):

Commodity exchanges.

Commercial products.

Risk.

Physical Description:

1 online resource (418 p.)

Edition:

Second edition.

Place of Publication:

Chichester, England : Wiley, 2015.

Language Note:

English

Summary:

Drive profit and manage risk with expert guidance on trade processing The Trade Life cycle catalogues and details the various types of trades, including the inherent cash flows and risk exposures of each. Now in its second edition, this comprehensive guide includes major new coverage of traded products, credit valuation adjustment, regulation, and the role of information technology. By reading this, you'll dissect a trade into its component parts, track it from preconception to maturity, and learn how it affects each business function of a financial institution. You will become familiar with

Contents:

The Trade Life cycle; Contents; Foreword from the First Edition; Why this book?; Foreword to the Second Edition; Preface; Acknowledgements; About the Author; Part One Products and the Background to Trading; 1 Trading; 1.1 How and why do people trade?; 1.2 Factors affecting trade; Product appetite; Risk appetite; Exposure; 1.3 Market participants; Producer; Consumer; Speculator; Market maker; 1.4 Means by which trades are transacted; Brokers; Exchanges; Over-the-counter; 1.5 When is a trade live?; 1.6 Consequences of trading; 1.7 Trading in the financial services industry

Two types of trading policy Why does a financial entity trade?; 1.8 What do we mean by a trade?; 1.9 Who works on the trade and when?; 1.10 Summary; 2 Risk; 2.1 The concept of risk; 2.2 Risk is inevitable; 2.3 Quantifying risk; 2.4 Methods of dealing with risk; 2.5 Managing risk; 2.6 Problems of unforeseen risk; 2.7 Summary; 3 Understanding Traded Products - Follow the Money; 3.1 Spot trades; 3.2 Future (forward); 3.3 Loan; 3.4 Deposit; 3.5 Swap; 3.6 Foreign exchange swap; 3.7 Equity spot; 3.8 Bond spot; 3.9 Option; 3.10 Credit default swap; 3.11 Summary; 4 Asset Classes; 4.1 Interest rates

Interest and the time value of money Interest rate participants; The asset class of interest rate products; The discount curve; Removing credit effects; Trade flow issues; 4.2 Foreign exchange (Forex or FX); Spot; Futures and forwards; Currency swaps; FX swap; Baskets; Reporting currency; FX Drift; Trade flow issues; 4.3 Equity; Synthetic equities (index); Lifecycle issues pertinent to equity trades; 4.4 Bonds and credit; Bonds; Other credit risk bearing instruments; 4.5 Commodities; Origin of financial trading; What are commodities?; OTC commodities; Localised nature of production; Time lag

Utility of commodities Precious metals as a currency; Physical settlement; Other trade flow issues; 4.6 Trading across asset classes; 4.7 Summary; 5 Derivatives, Structures and Hybrids; 5.1 Linear; Differences between futures and forwards; 5.2 Nonlinear; Trade process issues relating to options; 5.3 Some option terminology; 5.4 Option valuation; 5.5 Exotic options; Examples of exotic options; Issues with exotics; 5.6 Structures and hybrids; 5.7 Importance of simpler products; 5.8 Trade matrix; 5.9 Summary; 6 Liquidity, Price and Leverage; 6.1 Liquidity; Two types of trading; What is liquidity?

Asset liquidity Measuring liquidity; Risks associated with liquidity; 6.2 Price; Over-the-counter price; Exchange price; Broker price; What can we infer from price?; Cost of unwind; Volumes; 6.3 Leverage; Advantages of leverage; Disadvantages of leverage; Measurement of leverage; Current market position; 6.4 Summary; Part Two The Trade Life cycle; 7 Anatomy of a Trade; 7.1 The underlying; 7.2 General; 7.3 Economic; 7.4 Sales; 7.5 Legal; 7.6 Booking; 7.7 Counter party; 7.8 Timeline; Dates relating to a trade; Example; 7.9 Summary; 8 Trade Life cycle; 8.1 Pre execution; Provisional trades; Orders

8.2 Execution and booking

Notes:

Description based upon print version of record.

Includes bibliographical references and index.

Description based on print version record.

ISBN:

9781119003687

1119003687

9781119014393

1119014395

9781119003571

1119003571

OCLC:

908935561