Forex trading desk

Forex trading desk

Oct 14,  · A Front Row Seat to 24 Epic Trading Desks. by InvestorsLive | Oct 14, Stock traders spend a good portion of their days behind a trading desk, so it's only right that they have some solid setups. A lot of day traders have a different approach to their setups, just like a lot of them utilize different trading blogger.coms: 42 Oct 01,  · Dealing Desk: In foreign currency markets, a dealing desk is where the forex dealers at a bank or financial institution sit. Since the forex market is open around-the-clock, many institutions have Forex trading involves significant risk of loss and is not suitable for all investors. Full Disclosure. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. *Increasing leverage increases risk. GAIN Capital Group LLC (dba blogger.com) US Hwy / Bedminster NJ , USA

The Different Trading Desks of an Investment Bank

A sector in an investment bank is referred to as a trading desk. Depending on the investment bank, trading desks are likely to be divided by market. The four main sectors are foreign exchange or forexfixed incomeequitiesand commodities. Each of these sectors can be further subdivided. For instance, fixed income is a very broad category and can deal with anything from ultra-safe U. Treasuries to ultra-risky, low-grade company bonds also known as junk bonds.

Larger investment banks may subdivide their trading desks to specialize in narrower categories within these main sectors. Specialized trading desks allow investment firms to separate the different kinds of assets forex trading desk markets, many of which trade under different rules and require different certifications. For example, commodity traders must be licensed and registered by the National Futures Association, as well as the CFTC, and stock traders have their own exam and licensing requirements.

The separation between the equities desk and the commodities desk allows both assets to be traded with minimum friction between the different traders. Every large investment bank has some form of forex forex trading desk desk. The forex market is the largest in the world, dwarfing equities and fixed income.

Most of this trading is done by institutional investors such as investment banks. Traders are drawn to forex trading because it is highly liquid, meaning they can take on large positions and get in and out of trading positions with ease. Forex contracts are quoted in currency pairs, forex trading desk. The U. Traders on a forex trading desk usually deal in the spot exchange rate of a foreign exchange contract.

Almost every bank has a forex trading desk, since the foreign exchange market is the largest global market. Fixed income generally refers to anything that has an income stream, from government bonds, such as U. Treasuries, to corporate bonds. Credit default swaps CDS are derivatives that insure against default by the issuer of corporate bonds or sovereign debt and can be traded on fixed-income trading desks, forex trading desk.

Sometimes an investment bank subdivides its fixed-income trading desks so the derivatives desk dealing forex trading desk CDS is different from the trading desk dealing in the less-risky U, forex trading desk.

Treasury bonds, or the desk dealing in the riskier corporate low-grade bonds also known as junk bonds forex trading desk separate from the desk dealing in higher-grade corporate bonds, forex trading desk.

Debt issued by developed countries may also be traded on a desk that is different from the desk forex trading desk deals in the sovereign debt of developing countries. The equity trading desk of an investment bank can cover anything from equity sales or trading to equity derivatives trading and exotic options trading. Sell-side traders on equity trading desks use information from research analysts' reports to try to generate sales ideas among their clients, forex trading desk.

The trading desk gets a commission from trades placed through it. Equity sales desk traders execute trade orders for clients, forex trading desk. Often, the trading desk is divided into those that execute trades for institutional clients and those that institute trades for hedge fund clients. Commodities can include anything from hard commodities such as crude oil, gold, and silver to soft commodities that include agricultural products such as cocoa, coffee, soybean, rice, wheat, and corn.

The main difference between the two is that soft commodities have short shelf lives and hard commodities have much longer shelf lives. Investment bank commodities trading desks can be split into separate desks for hard and soft commodities, but depending on the amount of trading done by the bank, they could be further split with some banks having trading desks dedicated to a particular commodity such as crude oil. Trading can be done by way of futures trading or spot trading.

Spot trading is done when the price and also delivery of the commodity take place shortly after the contract is completed. With futures trading, the price is agreed upon immediately but delivery is for a certain forex trading desk in the future.

Trades are done on behalf of hedgers or speculators. Hedgers are usually large commercial concerns that want to hedge the price of a commodity they use in their businesses, forex trading desk. For example, an airline might want to hedge the price of oil for future use, or a farmer might want to hedge the price they get for their wheat that will be available for delivery months in the future. Trading desks represent the different divisions of an investment bank, hedge fund, or other financial institution.

Since each market has distinct products and requirements, separate trading desks allow traders to optimize their investment strategies. The Federal Reserve Open Market Trading Desk is a trading desk for the purchase and sale of securities on behalf of the Federal Reserve Bank of New York, as part of the Reserve's efforts to control inflation and interest rates.

At present, forex trading desk, the Federal Reserve's portfolio includes U. Treasuries, mortgage-backed securitiesbank debt, and repurchase agreements, forex trading desk. An offshore trading desk is an area dedicated to trading in international markets and exchanges, often in commodities or depositary receipts.

An Ad Trading Desk, or Agency Trading Desk, is a software platform or other service for buying or selling programmatic advertisements. In addition to bidding on ad space, Agency Trading Desks also monitor the results and offer audience insights, allowing advertisers to plan and optimize in future campaigns.

Bank for International Settlements BIS. New York Federal Reserve Bank "Permanent Open Market Operations. Kantar Media. Metals Trading. Your Money, forex trading desk. Personal Finance. Your Practice, forex trading desk. Popular Courses. Table of Contents Expand.

Benefits of Trading Desks. Forex Trading Desk, forex trading desk. Fixed-Income Trading Desk. The Bottom Line. Trading Desk FAQs, forex trading desk. Key Takeaways A trading desk is a designated area of a bank, investment firm, or trading floor dedicated to the sale and purchase of specific types of products. Many institutions have forex trading desk trading desks for the forex, forex trading desk, fixed income, commodities, and equities markets.

Some institutions may further subdivide the different markets. The Federal Reserve also has a trading desk that trades securities in order to stabilize the markets.

Foreign exchange, or forex, desks are the most common trading desks because the global forex market is much larger than the equities or commodities markets. Do not confuse trading desks for Agency Trading Desks, which are used to buy audience access for advertisements. Tip Almost every bank has a forex trading desk, since the foreign exchange market is the largest global market.

Article Sources. Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, forex trading desk interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, forex trading desk content in our editorial policy, forex trading desk.

Compare Accounts. Advertiser Disclosure ×. The offers that appear in this table are from partnerships from which Investopedia receives compensation. This compensation may impact how and where listings appear. Investopedia does not include all offers available in the marketplace. Related Articles. Commodities Commodities: The Portfolio Hedge. Metals Trading Trading Gold and Silver Futures Contracts.

Partner Links. Related Terms Trading Desk Definition A trading desk is where transactions for buying and selling securities occur, which is crucial to providing market liquidity. Commodity Market A commodity market is a physical or virtual marketplace for buying, selling, and trading commodities. Discover how investors profit from the commodity market. Financial Markets Financial forex trading desk refer broadly to any marketplace where the trading of securities occurs, including the stock market and bond markets, among others.

What Is Finance? Finance is the study and management of money, forex trading desk, investments, and other financial instruments. Learn about the basics of public, corporate, and personal finance. What Does Cash Market Mean? A cash market is a marketplace in which the commodities or securities purchased are paid for and received at the point of sale. Commercial Trader Definition The term commercial trader refers to any trader who trades on behalf of a business or institution.

In the commodities market, commercial traders are hedgers. About Us Terms of Use Dictionary Editorial Forex trading desk Advertise News Privacy Policy Contact Us Careers California Privacy Notice. Investopedia is part of the Dotdash publishing family.

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Trading Desk Definition

Oct 01,  · Dealing Desk: In foreign currency markets, a dealing desk is where the forex dealers at a bank or financial institution sit. Since the forex market is open around-the-clock, many institutions have Jun 21,  · Forex Trading Desk. Every large investment bank has some form of forex trading desk. The forex market is the largest in the world, dwarfing equities and Oct 14,  · A Front Row Seat to 24 Epic Trading Desks. by InvestorsLive | Oct 14, Stock traders spend a good portion of their days behind a trading desk, so it's only right that they have some solid setups. A lot of day traders have a different approach to their setups, just like a lot of them utilize different trading blogger.coms: 42