29 lines
1.3 KiB
Plaintext
29 lines
1.3 KiB
Plaintext
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@startmindmap
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* Basic concepts regarding the modern trading setup
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** Market driver: supply/demand
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** Modern trading: efficient market price discovery
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*** competition:
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**** granularity of data participants recieve & handle
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**** sophistication of insight
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** Market sectors
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*** i.e. different kinds of underlying products that can be traded.
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*** e.g.
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**** commodities (metal, agricultural produce)
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**** energy (oil, gas)
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**** equities (stocks)
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**** interest rate bonds (coupons)
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**** foreign exchange
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** Asset classes
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*** an asset class is a group of financial instruments which have similar financial characteristics and behave similarly in the marketplace.
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*** e.g.
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**** cash interest rate bonds, cash foreign exchange, cash stock shares
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**** derivatives of above: future & options
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*** future contract: buyer/seller cannot refuse
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*** option contract: buyer/seller can refuse to buy or sell
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** Basics of what a modern trading
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*** trading done electronically through different software.
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*** Market data feed handler process/understand market data
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**** market data is published in specific protocol (e.g. FIX/FAST,ITCH)
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*** Handler app relay information back to buyer/seller.
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*** buyer/seller made decision and communicated to exchange through similar software application (order entry gateways)
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@endmindmap
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