Stock Trading Desk Setup - Stock Market Trading Desktop Setup for Traders in India
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The stock market is vast, and only some are experts handling every stock. Thus, Stock Trading Desktop Setup came. With the help of the Stock trading Desk Setup, traders can better help their clients
What is a Stock Trading Desk Setup ?
The trading desk is the actual location where the buyers and sellers come together to make any transaction. These transactions are of any securities of the Stock Market, such as shares, bonds, debentures, currency, etc. trading can be done for their personal gain or on behalf of their clients. Some also call it a dealing desk.
Stock trading desk setup plays a crucial role as they provide traders with their expert opinion; help them make strategies in various stock market situations, and many other legal support, etc. In return, trading desks or firms charge their clients a fee called commission.
A trading desk provides various other benefits to traders or clients, like creating a portfolio, making relevant support documents, helping identify trading opportunities, helping in wealth maximization via arbitrage trading opportunity, and many more. Stock Trading desks are helpful in arbitrage opportunities and maintaining liquidity in the stock market.
If you ever visit any such firm, you will find a dedicated floor, cabins, or trading desktop that only deals in one particular stock type, for example, currency.
The Stock trading Desk Setup concept was first seen in the 1970s in the bank - Morgan Stanley. When they split their operations, this concept took birth. Furthermore, during the 1980s, the trading rooms and delta trading desks in the Stock Market started gaining popularity in the European market, too, in countries like UK and France, and there has been a huge change in the financial world since then.
How does the Stock Trading Desk Work ?
A Stock Trader Desk Setup is a large open space, a trading room, or a trading floor. In this room, there are many desks dedicated to a specific stock type. Also, on every desk, a trader has a license to deal in a specific financial asset; it can be bonds, shares, commodities, currencies, etc.
These traders are sitting here to manage the client's portfolio based on their academics, previous experience handling that asset, and managerial skills.
What are the Benefits of a Stock Trading Desktop Setup ?
By setting up Stock Trading Desktop Setup a trader can enjoy the various benefits such as listed below:
● Low costs
● Avail expert knowledge
● Good performance on a regular basis
● Monitoring the performance
● The benefit of using the advanced technology
Categories of trading desk:
Find below the various types of categories of Stock Trading Desk Setups:
Fixed Income trading desks:
Fixed income trading desk is the term used for trading in bonds. They are usually US treasury bonds or corporate bonds. They are further divided into various other categories based on their risks.
Forex desk or Foreign exchange trading desks:
This department is usually seen in any large bank, they majorly handle the pair of currencies. They deal in spot exchange rates of foreign currency transactions.
Equity trading desk:
On these trading desktop, traders analyze the data provided by the stock market analyst and suggest to their clients the various trading opportunities in arbitrage, hedging, etc. They look after almost every equity derivative, including options.
Commodity trading desk:
You will find various commodities being traded on these Stock Trading Desk Setup, such as crude oil, agricultural products, gold, natural gas, etc. They are again classified into three categories, raw, soft, and hard commodities; they can be traded on the spot and with the help of future contracts.
You must be aware of various terms used in the Stock Trading Desktop Setup in the stock market, such as:
The trading floor is where the transactions occur, buying and selling of bonds, shares, etc. The dealing desk is defined differently than the trading floor. If you plan to open up your own Stock Trader Desk Setup or work with one, please familiarize yourself with the terms in use.
So, this was the brief about Stock Trading Desk Setup. If you want to know more, pick up your phone and dial the number shown on your screen.