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Proprietary Trading

Proprietary trading (manishhathiramani.com) is a concept used by a bank or other monetary institution wherein the bank or financial institution involves in trading stocks, futures, options, commodities, currencies & other derivative instruments using tools like Indian share market news and stock market analysis and investing its own money & on its own account. Conventionally banks & other financial establishments are engaged in accepting payments from clients & lending the same at a higher rate to earn an income comparable to interest rate differentials.

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Proprietary Trading

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  1. Indian Share Market News Financial institution involves in trading stocks, futures, options, commodities, currencies & other derivative instruments using tools like Indian share market news and stock market analysis and investing its own money & on its own account. It is worthwhile to start a proprietary trading as it generates profit with actual market movements as against to earning commissions & fees with trading on behalf of the customers. Many financial associations also favour to appoint freelancing traders from across the globe to trade on their behalf & for that they reimburse handsome amounts considering the trading performance.

  2. Stock Market Analysis Trading tools like Stock market analysis, statistical arbitrage, index arbitrage, risk arbitrage, volatility arbitrage are at time misused if you do not select your trader wisely. As per latest development, US diplomats proposed to put a ban on proprietary trading by depositories & require that banks and other financial organizations keep high reserves in case they wish to engage in proprietary trading. The conflict of interest arising out of proprietary trading may risk the interest of the customers who are investing based on the predictions of the traders or the investors in general investing on their own.

  3. Proprietary Trading Proprietary trading is a concept used by a bank or other monetary institution wherein the bank. Conventionally banks & other financial establishments are engaged in accepting payments from clients & lending the same at a higher rate to earn an income comparable to interest rate differentials. Investment banks are responsible to raise fund for its clients. Investment Banks also play a big role in helping their clients to find the buyers for stock issues. Banks do business as a guarantor and buy the shares of their patrons in case the stock issue is under pledged. Many banks provide portfolio management services & trading facilities to their client. They engage in trading on behalf of their customer sand charge fees or commission from the clients.

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