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

Book Description

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

Table of Contents

  1. Cover image
  2. Title page
  3. Table of Contents
  4. Copyright
  5. Preface for the Set
    1. Features of the books
    2. Acknowledgments
  6. Preface
  7. Overview
    1. Taxonomy of markets
    2. Entities
    3. Instruments
    4. Functions
    5. Technology
    6. Global markets
    7. Risk management
    8. Regulation
    9. Compliance
  8. Visual Glossary
    1. PREFACE
  9. Part 1: Investing and Trading
    1. Introduction
    2. 1. Investing
      1. Investing concepts
      2. Investment styles
    3. 2. Trading
      1. Trading concepts
      2. Trading tools
      3. Trade motivation
      4. Trading styles (approaches)
      5. Retail behavior
      6. The spectrum of orders
      7. Trading economics
      8. Conclusions
      9. Related information in other books
  10. Part 2: Markets and Marketplaces
    1. Introduction
    2. 1. The Primary Market
      1. Primary market methods
      2. Market organization
      3. Primary market economics
    3. 2. Secondary Markets
      1. Secondary market structure
      2. Types of markets
      3. Market format
      4. Market mechanics
      5. Market tools
      6. Liquidity behavior
      7. Related information in other books
  11. Part 3: Instruments
    1. Introduction
    2. 1. Cash Instruments
      1. Equities
      2. Fixed income (fixed interest)
      3. Currencies
      4. Commodities
    3. 2. Derivative Instruments
      1. Options
      2. Futures
      3. Complex derivatives
      4. Conclusions and related information in other books
  12. Part 4: Processes
    1. Introduction
    2. 1. Primary Market Process
      1. Steps in the underwriting process
    3. 2. Secondary Market Process
      1. Steps in the trading process
      2. Business process flow
    4. 3. Support Processes
      1. Investment research
      2. Steps in the investment research process
      3. Street support processes
      4. Customer support processes
      5. Related information in other books
  13. Conclusion
    1. Book 1: an introduction to trading in the financial markets: market basics
    2. Book 3: an introduction to trading in the financial markets: technology—systems, data, and networks
    3. Book 4: an introduction to trading in the financial markets: global markets, risk, compliance, and regulation
  14. Appendix: Historical settlement methods
    1. Fixed Calendar Settlement Dates
    2. Daily balance orders
  15. Glossary
  16. References
  17. Index