Entity Trading Account

AAA

DEFINITION of 'Entity Trading Account'

A trading account that belongs to a legal entity such as a corporation or limited partnership. There are certain advantages to entity trading accounts over individual trading accounts, such as tax deductions and certainty in tax law.

INVESTOPEDIA EXPLAINS 'Entity Trading Account'

An entity trading account needs one or more persons with authority to trade in the account. Such persons should be competent and honest traders in order to avoid losses in the account arising from poor trading decisions or unscrupulous behavior.

RELATED TERMS
  1. Day Trader

    A investor who attempts to profit by making rapid trades intraday. ...
  2. Position Trader

    A type of stock trader who holds a position for the long term ...
  3. Scalper

    A person trading in the equities or options and futures market ...
  4. Swing Trading

    A style of trading that attempts to capture gains in a stock ...
  5. Trading Account

    1. An account similar to a traditional bank account, holding ...
  6. Silent Partner

    An individual whose involvement in a partnership is limited to ...
Related Articles
  1. Forex Education

    Understanding Forex Rollover Credits And Debits

    Forex trades are subject to receiving interest or being debited interest if positions are held overnight.
  2. Forex Education

    Forex Basics: Setting Up An Account

    The line between profitable forex trading and ending up in the red may be as simple as choosing the right account.
  3. Active Trading Fundamentals

    Limiting Losses

    It is impossible to avoid them completely, but there is a systematic method you can use to control them.
  4. Trading Strategies

    How are Outside Days interpreted by analysts and traders?

    Understand the meaning and significance of outside days and how they are interpreted as trading signals by traders and market analysts.
  5. Typically, SPEs are subsidiaries of a larger corporation.
    Investing

    How Special Purpose Entities Help Fight Risk

    A special purpose entity, sometimes called a special purpose vehicle, is a legal entity created for one very limited, particular task. Typically, SPEs are subsidiaries of a larger corporation.
  6. Trading Strategies

    How do I build a trading strategy after spotting a breakaway gap pattern?

    Capitalize on the irrational exuberance investors create, forming a breakaway gap. Learn the best strategy for trading a stock during this time.
  7. Trading Strategies

    What are common trading strategies used with the Double Exponential Moving Average (DEMA)?

    Learn how the double exponential moving average, or DEMA, works and how swing traders use this fast moving average to develop trading strategies.
  8. Trading Strategies

    What are the main strategies traders execute when using ascending channels?

    Utilize ascending channel patterns to determine good trade entry points for following an uptrend or for swing trading as price moves back and forth.
  9. Trading Strategies

    What are the most common continuation candlestick patterns?

    Learn about the four most common types of continuation patterns found in candlestick charts: triangles, rectangles, flags and pennants.
  10. Trading Strategies

    How do I create a trading strategy with Bollinger BandsĀ® and the MACD?

    Learn how to establish profitable trading strategies using technical trader favorites such as Bollinger Bands and the moving average convergence divergence.

You May Also Like

Hot Definitions
  1. SWOT Analysis

    A tool that identifies the strengths, weaknesses, opportunities and threats of an organization. Specifically, SWOT is a basic, ...
  2. Simple Interest

    A quick method of calculating the interest charge on a loan. Simple interest is determined by multiplying the interest rate ...
  3. Special Administrative Region - SAR

    Unique geographical areas with a high degree of autonomy set up by the People's Republic of China. The Special Administrative ...
  4. Annual Percentage Rate - APR

    The annual rate that is charged for borrowing (or made by investing), expressed as a single percentage number that represents ...
  5. Free Carrier - FCA

    A trade term requiring the seller to deliver goods to a named airport, terminal, or other place where the carrier operates. ...
  6. Law Of Supply And Demand

    A theory explaining the interaction between the supply of a resource and the demand for that resource. The law of supply ...
Trading Center