Tuesday, 21 April 2009

Trader Vs Dealing Room

A proprietary trader, on the other hand, is looking for a larger profit margin—in percentage points rather than basis points— based on a directional view about a currency, volatility, an interest rate that is about to change, a trend, or a major policy move in fact, any strategic view about an opportunity, a vulnerability, or a mispricing in a market rate.

Some dealers institutions banks and otherwise—put sizeable amounts of their own capital at risk for extended periods in
proprietary trading, and devote considerable resources to acquiring the risk analysis systems and other equipment and personnel to assist in developing and implementing such strategies.

Others are much more limited in their proprietary trading.


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