#Trading #operations

"Trading operations" broadly refers to the processes and activities involved in the buying and selling of financial instruments or goods. It encompasses everything from the initial decision to trade, through execution, to the final settlement and recording of the transaction.

Here's a breakdown of key aspects:

1. The Trade Life Cycle: Trading operations typically follow a multi-stage life cycle:

* Pre-Trade: This involves activities before a trade is placed, such as research, analysis (fundamental or technical), strategy development, risk assessment, and client onboarding.

* Trade Execution: The actual buying or selling of the financial instrument on an exchange or over-the-counter. This can be manual or automated (algorithmic trading).

* Trade Clearing: The process of verifying the details of a trade, calculating obligations, and preparing for settlement.

* Trade Settlement: The final exchange