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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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