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Decrypting the Trading Desk

Primarily, the definition of a trading desk clearly reveals that a trading desk is a physical location where transactions for buying and selling securities take place. In this blog, we will penetrate deeply into the functioning and features of a trading desk but before we go for that you must know that only Bear Street is a standout with all the Types of Trading Desks in Delhi at its helm. It is the most reputable and renowned trading floor with seamless access to the Foreign Exchange Market in Delhi.  So getting back to our blog we will now try to understand starkly what exactly a trading desk stands for.

 

Traders who indulge in the activities of a financial market usually get together at a designated space known as a trading floor or trading room. On any trading floor, there are a number of trading desks. Trading desks are of vital importance, a trading desk is responsible for buying and selling securities within a financial institution. 

 

Who Looks Over a Trading Desk?

Trading desks are mostly supervised by a licensed trader who specializes in a given investment type such as equities or commodities. In the first place, these traders utilize electronic systems to find out and locate the best prices for their concerned clients. Trading desks are of great help to clients. The personnel on the trading desk often acts as the guide for a client to grab the right opportunities.  

 

How Does a Trading Desk Work?

Every transaction that occurs at a trading desk brings along with it the commission money. That is most simply how a trading desk generates income. 

 

How many types of trading desks are there? 

Generally speaking, there are five types of trading desks:

  • Equity trading desks,
  • Fixed-income trading desks,
  • Foreign exchange trading desks,
  • Commodity trading desks,
  • Derivative trading desks. 

 

Now, let us know the definition of each trading desk quite precisely.

 

Equity trading desks: From equities derivatives to exotic options trading, these trading desks manage that all. Equity trading desks are even used for executing hedge fund trades. 

 

Fixed Income trading desks: These trading desks generally include steady income bonds like government bonds and corporate bonds. These bonds pay yields. 

 

Foreign exchange trading desk: Forex trading desk acts as a market maker. Forex trading desks facilitate currency pairs; they can also perform proprietary trading activities. 

Commodity trading desks: These types of trading desks are mainly focused on agriculture products, metals, and other commodities like crude oil, gold, wheat, etc. 

 

Derivative trading desks: As the name suggests they are meant for trading in derivatives such as options, futures, forwards, and swaps. 

 

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