Proprietary Trading - PowerPoint PPT Presentation

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Proprietary Trading

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Proprietary trading (manishhathiramani.com) is a concept used by a bank or other monetary institution wherein the bank or financial institution involves in trading stocks, futures, options, commodities, currencies & other derivative instruments using tools like Indian share market news and stock market analysis and investing its own money & on its own account. Conventionally banks & other financial establishments are engaged in accepting payments from clients & lending the same at a higher rate to earn an income comparable to interest rate differentials. – PowerPoint PPT presentation

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Title: Proprietary Trading


1
Indian Share Market News
  • Financial institution involves in trading stocks,
    futures, options, commodities, currencies other
    derivative instruments using tools like Indian
    share market news and stock market analysis and
    investing its own money on its own account. It
    is worthwhile to start a proprietary trading as
    it generates profit with actual market movements
    as against to earning commissions fees with
    trading on behalf of the customers. Many
    financial associations also favour to appoint
    freelancing traders from across the globe to
    trade on their behalf for that they reimburse
    handsome amounts considering the trading
    performance.

2
Stock Market Analysis
  • Trading tools like Stock market analysis,
    statistical arbitrage, index arbitrage, risk
    arbitrage, volatility arbitrage are at time
    misused if you do not select your trader wisely.
    As per latest development, US diplomats proposed
    to put a ban on proprietary trading by
    depositories require that banks and other
    financial organizations keep high reserves in
    case they wish to engage in proprietary trading.
    The conflict of interest arising out of
    proprietary trading may risk the interest of the
    customers who are investing based on the
    predictions of the traders or the investors in
    general investing on their own.

3
Proprietary Trading
  • Proprietary trading is a concept used by a bank
    or other monetary institution wherein the bank.
    Conventionally banks other financial
    establishments are engaged in accepting payments
    from clients lending the same at a higher rate
    to earn an income comparable to interest rate
    differentials. Investment banks are responsible
    to raise fund for its clients. Investment Banks
    also play a big role in helping their clients to
    find the buyers for stock issues. Banks do
    business as a guarantor and buy the shares of
    their patrons in case the stock issue is under
    pledged. Many banks provide portfolio management
    services trading facilities to their client.
    They engage in trading on behalf of their
    customer sand charge fees or commission from the
    clients.
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