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Showing posts from November, 2017

Trade Initiation and Settlement (Trade Life Cycle)

What is a trade? Trade is a process of  buying and selling  any financial instrument. Just like any other product even a trade has its life cycle involving several steps, as those with a  career in investment banking  know. What are the Steps involved in a Trade Life Cycle? Overview of the Process 1. Sale  – This is a process of  client acquisition  in which HNIs or Institutional clients are  introduced to various investment products  or vehicles. These vehicles or products are  available with an Investment Manager or Bank  by whom the client’s investments are managed. The investments are  collectively called a Mutual or a Hedge fund . 2. Trade Initiation and Execution  – This is the process of  placing an order in the market . Trade Initiation and Execution  can be done both at Order and Quote driven markets . This  depends on the choice of market place and on the external platform . Once order is  placed and i