An Introduction to Trading in the Financial Markets: Trading, Markets, Instruments, and Processes

Trading on the financial markets requires the mastery of many subjects, from strategies and the instruments being traded to market structures and the mechanisms that drive executions.  This second of four volumes explores them all.  After brief explanations of the activities associated with buying and selling, the book covers principals, agents, and the market venues in which they interact.  Next come the instruments that they buy and sell:  how are they categorized and how do they act?  Concluding the volume is a discussion about major processes and the ways that they vary by market and instrument.  Contributing to these explanations are visual cues that guide readers through the material.  Making profitable trades might not be easy, but with the help of this book they are possible.

• Explains the basics of investing and trading, markets, instruments, and processes.
• Presents major concepts with graphs and easily-understood definitions 
• Builds upon the introduction provided by Book 1 while preparing the reader for Books 3 and 4

New entrants into financial technology and financial markets positions, junior level financial technology and financial markets professionals looking to advance their careers.

Preface for the Set

Features of the books

Acknowledgments

Preface

Overview

Taxonomy of markets

Entities

Instruments

Functions

Technology

Global markets

Risk management

Regulation

Compliance

Visual Glossary

PREFACE

OVERVIEW

PART 1: INVESTING AND TRADING

PART 2: MARKETS AND MARKETPLACES

PART 3: INSTRUMENTS

PART 4: PROCESSES

Part 1: Investing and Trading

Introduction

1. Investing

Investing concepts

Investment styles

2. Trading

Trading concepts

Trading tools

Trade motivation

Trading styles (approaches)

Retail behavior

The spectrum of orders

Trading economics

Conclusions

Related information in other books

Part 2: Markets and Marketplaces

Introduction

1. The Primary Market

Primary market methods

Market organization

Primary market economics

2. Secondary Markets

Secondary market structure

Types of markets

Market format

Market mechanics

Market tools

Liquidity behavior

Related information in other books

Part 3: Instruments

Introduction

1. Cash Instruments

Equities

Fixed income (fixed interest)

Currencies

Commodities

2. Derivative Instruments

Options

Futures

Complex derivatives

Conclusions and related information in other books

Part 4: Processes

Introduction

1. Primary Market Process

Steps in the underwriting process

2. Secondary Market Process

Steps in the trading process

Business process flow

3. Support Processes

Investment research

Steps in the investment research process

Street support processes

Customer support processes

Related information in other books

Conclusion

Book 1: an introduction to trading in the financial markets: market basics

Book 3: an introduction to trading in the financial markets: technology—systems, data, and networks

Book 4: an introduction to trading in the financial markets: global markets, risk, compliance, and regulation

Appendix: Historical settlement methods

Fixed Calendar Settlement Dates

Daily balance orders

Glossary

References

Index