Trading desk: Easy explanation.

Описание: In this video, you will learn everything you need to know about trading desks.

#tradingdesk #financialmarkets #wallstreetmojo #financialservices #investmentbank

Chapters:
00:00 – Introduction
00:48 – What is a trading desk?
01:56 – How do trading desks work?
02:50 – Advantages
04:15 – Disadvantages
05:07 – Conclusion

What is a trading desk?
A trading desk would be a bank or financial institution department that buys or sells financial assets on behalf of clients.

The trading desks would comprise expert traders with vast knowledge about the mechanisms of the markets, and they know how to get the best price for their clients.

The trading desks may also help clients structure products, provide investment opportunities, or smooth trade facilitation and capital flow among parties.

How do trading desks work?
Traders on trading desks may specialize in one market segment like equities, fixed income, forex, commodities, etc. And they may even get licenses from regulators.

They usually do this through market makers and other electronic trading mechanisms to find the best price for clients.

(Explained in detail in the video)

Advantages
Ease of market evaluation
Structuring financial goods
Advisory services
Cost reduction
Enhanced profitability

(Explained in detail in the video)

Disadvantages
Trading desks usually aren’t completely transparent. There’s limited transparency when evaluating performance, conducting analysis, and improving strategies.

There have also been issues of related party transactions that clients usually are apprehensive of as third parties sometimes control these desks.

Finally, the trading desks provide services that are not free, and clients must pay commissions.

This was all about trading desks. Subscribe to the channel, and don’t forget to give this video a like.

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