Larry Williams – Forecast for 2010

Larry Williams – Forecast for 2010

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Larry Williams University. In the fall of 2006 we began the Larry Williams University. Our goal is to eventually have a virtual university that contains all of Larry Williams’ work. It will be the place to come to find courses, articles & books written by Larry. The intention is not to hit you over the head with advertisements for software or brokers or links to other sites

DEFINITION OF ‘TRADING BOOK’

The portfolio of financial instruments held by a brokerage or bank. Financial instruments in a trading book are purchased or sold to facilitate trading for the institution’s customers, to profit from trading spreads between the bid and ask prices, or to hedge against various types of risk. Trading books can range in size from hundreds of thousands of dollars at the smallest institutions to tens of billions at the largest financial institutions. Most institutions employ sophisticated risk metrics to manage and mitigate risk in their trading books.

The trading book has been the source of massive losses for a number of financial institutions in recent years. Such losses often arise because of extremely high degrees of leverage employed by an institution to build the trading book. Another source of trading book losses is disproportionate, highly concentrated wagers on specific securities or market sectors by errant or rogue traders.

Trading book losses can have a cascading, global effect when they hit numerous financial institutions at the same time, such as during the LTCM/Russian debt crisis of 1998, and the Lehman Brothers bankruptcy in 2008. In fact, the global credit crunch and financial crisis of 2008 was significantly attributable to the hundreds of billions of losses sustained by global investment banks in the mortgage-backed securities portfolios held within their trading books.

Bond -Stock Trading course: Learn about Bond -Stock Trading

Bond trading definition
Bond trading is one way of making profit from fluctuations in the value of corporate or government bonds.
Many view it as an essential part of a diversified trading portfolio, alongside stocks and cash.

A bond is a financial instrument that works by allowing individuals to loan cash to institutions such as governments or companies.
The institution will pay a defined interest rate on the investment for the duration of the bond, and then give the original sum back at the end of the loan’s term.

A stock trader or equity trader or share trader is a person or company involved in trading equity securities.
Stock traders may be an agent, hedger, arbitrageur, speculator, stockbroker.
Such equity trading in large publicly traded companies may be through a stock exchange.
Stock shares in smaller public companies may be bought and sold in over-the-counter (OTC) markets.

Stock traders can trade on their own account, called proprietary trading, or through an agent authorized to buy and sell on the owner’s behalf.
Trading through an agent is usually through a stockbroker. Agents are paid a commission for performing the trade.

Major stock exchanges have market makers who help limit price variation (volatility) by buying and selling a particular company’s shares on their own behalf and also on behalf of other clients.

More Course: BOND – STOCK

Outstanding Course:Jack Gillen