"Trading operations" can refer to the full set of tasks and processes involved in executing and managing trades in financial markets—whether in traditional markets (like stocks or forex) or crypto. Here's a breakdown of key components:
🔹 1. Pre-Trade Operations
Market Research & Analysis: Technical and fundamental analysis to identify opportunities.
Risk Assessment: Defining risk tolerance, capital allocation, and setting stop-loss/take-profit levels.
Order Planning: Deciding on order type (market, limit, stop, etc.) and timing.
🔹 2. Trade Execution
Order Placement: Executing trades via platforms (e.g., broker, crypto exchange).
Order Types:
Market Order: Executes instantly at the best available price.
Limit Order: Executes at a specified price or better.
Stop Order: Triggers a trade once a certain price is reached.
Slippage Management: Especially important in high volatility markets.
🔹 3. Post-Trade Operations
Trade Confirmation: Verifying execution details (price, quantity, fees).
Position Monitoring: Managing open positions based on strategy and market changes.
Portfolio Rebalancing: Adjusting holdings to maintain desired asset allocation.
🔹 4. Risk & Compliance
Risk Management Tools: Stop-loss, trailing stop, position sizing.
Compliance Checks: Especially for institutional or regulated entities (e.g., AML, KYC in crypto).
Audit Trails: Keeping records of trade history and decision rationale.
🔹 5. Technology & Automation
Trading Platforms: Examples include Binance, MetaTrader, TradingView, etc.
APIs & Bots: Automated strategies using trading algorithms.
Latency Management: Reducing delay in order execution (especially for HFT).
🔹 6. Reporting & Performance Review
P&L Reports: Track profit and loss over time.
Analytics: Win rate, risk-reward ratio, Sharpe ratio, etc.
Strategy Refinement: Learn from outcomes to improve future trades.