Trading operations encompass the systematic processes involved in executing, settling, and managing financial trades. It's the "how-to" of trading, moving beyond mere opinion.
The typical flow includes:
Broker Selection & Account Opening: Choosing a regulated broker and establishing a trading and Demat (for securities) account.
Order Placement: Submitting instructions to buy or sell specific financial instruments (stocks, bonds, derivatives).
Order Execution: The broker matching the order with available prices in the market.
Confirmation: Verifying the trade details between buyer and seller.
Clearing & Settlement: The actual exchange of assets and funds, ensuring all obligations are met.
Record-keeping & Compliance: Maintaining accurate records and adhering to regulatory requirements.
Efficient trading operations are crucial for minimizing risk, ensuring accuracy, and maintaining market integrity.