#TradingOperations
Trading operations refer to the behind-the-scenes processes that support buying and selling in financial markets. These include order execution, clearing, settlement, and risk management.
Order Execution: When a trader places an order, it is sent to an exchange or broker for execution at the best available price.
Clearing: This is the process of matching buy and sell orders and ensuring that both parties agree to the trade terms.
Settlement: After a trade is cleared, the actual exchange of assets (like crypto or fiat) happens—this is settlement.
Risk Management: Traders and platforms use strategies (like stop-loss orders or margin limits) to manage exposure and avoid big losses.
Back Office: Includes reconciliation, compliance, and reporting—ensuring trades are properly recorded and in line with regulations.
Efficient trading operations are key for smooth, secure, and reliable market activity.