Chapter 5 - Trading Clearing & Settlement : Introduction
Chapter 5 - Trading Clearing & Settlement : Introduction
In this chapter we are going to discuss about how actual trading and settlement takes place in exchanges.
5.1 Role of brokers & sub-brokers in trading
5.1 Role of brokers & sub-brokers in trading
We know that a broker is a member of a recognised stock exchange who is permitted to trade through the...
5.2 Order system
5.2 Order system
Let us start with understanding an order. When you want to buy something you need to order the same...
5.3 How are orders executed?
An investor informs a broker to place an order on his behalf.
5.4 Order matching priorities
For immediate execution of orders, the best sell order is the order with the lowest price and a best buy...
5.5 Types of orders
5.5 Types of orders
An increasing number of investors are now opting to use an internet-based broker for their trading.
5.6 Trading cycles
Once you have bought or sold shares, the transaction is complete only when you have got the shares you...
5.7 Settlement agencies
5.7 Settlement agencies
A clearing corporation, with the help of clearing members, custodians, clearing banks and depositories...
5.8 Transaction cycles
5.8 Transaction cycles
5.9 Pay-in and pay out of funds
5.9 Pay-in and pay out of funds
The settlement of funds' obligations is done through the clearing banks attached to clearing...
5.10 Securities movement
5.10 Securities movement
The settlement of funds’ obligations is done through the clearing banks attached to clearing...
5.11 Value at risk
5.11 Value at risk
In financial risk management, Value at Risk (VaR) is a widely used risk measure of the risk of...