The Trade Lifecycle: Behind the Scenes of the Trading Process

Table of Contents

 

Dedication

Title Page

Copyright Page

Preface

WHY THIS BOOK?

Author’s Note

Acknowledgements

 

Part I - Products and the Background to Trading

 

Chapter 1 - Trading

 

1.1 HOW AND WHY DO PEOPLE TRADE?

1.2 FACTORS AFFECTING TRADE

1.3 MARKET PARTICIPANTS

1.4 MEANS BY WHICH TRADES ARE TRANSACTED

1.5 WHEN IS A TRADE LIVE?

1.6 CONSEQUENCES OF TRADING

1.7 TRADING IN THE FINANCIAL SERVICES INDUSTRY

1.8 WHAT DO WE MEAN BY A TRADE?

1.9 WHO WORKS ON THE TRADE AND WHEN?

1.10 SUMMARY

 

Chapter 2 - Risk

 

2.1 INTRODUCTION

2.2 RISK IS INEVITABLE

2.3 QUANTIFYING RISK

2.4 METHODS OF DEALING WITH RISK

2.5 MANAGING RISK

2.6 PROBLEMS OF UNFORESEEN RISK

2.7 SUMMARY

 

Chapter 3 - Asset Classes

 

3.1 INTEREST RATES

3.2 FOREIGN EXCHANGE (FX)

3.3 EQUITY

3.4 BONDS AND CREDIT

3.5 COMMODITIES

3.6 TRADING ACROSS ASSET CLASSES

3.7 SUMMARY

 

Chapter 4 - Derivatives, Structures and Hybrids

 

4.1 WHAT IS A DERIVATIVE?

4.2 LINEAR

4.3 NONLINEAR

4.4 SOME OPTION TERMINOLOGY

4.5 OPTION VALUATION

4.6 EXOTIC OPTIONS

4.7 STRUCTURES AND HYBRIDS

4.8 IMPORTANCE OF SIMPLER PRODUCTS

4.9 TRADE MATRIX

4.10 SUMMARY

 

Chapter 5 - Credit Derivatives

 

5.1 INTRODUCTION

5.2 CDS

5.3 CLN

5.4 CDO

5.5 DATA RELATING TO CDOs

5.6 PRACTICAL ASPECTS OF CDO MANAGEMENT

5.7 PRACTICAL ASPECTS OF CDO VALUATION

5.8 WHY ARE CREDIT DERIVATIVES DIFFERENT?

5.9 SUMMARY

 

Chapter 6 - Liquidity, Price and Leverage

 

6.1 LIQUIDITY

6.2 PRICE

6.3 LEVERAGE

 

Part II - The Trade Lifecycle

Chapter 7 - Anatomy of a Trade

 

7.1 THE UNDERLYING ...