Entity Trading Account


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.

BREAKING DOWN '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.

  1. Day Trader

    A investor who attempts to profit by making rapid trades intraday. ...
  2. Swing Trading

    A style of trading that attempts to capture gains in a stock ...
  3. Scalper

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

    1. An account similar to a traditional bank account, holding ...
  5. Position Trader

    A type of stock trader who holds a position for the long term ...
  6. Passive Income

    Earnings an individual derives from a rental property, limited ...
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 to Trade In a Flat Market

    Reduce position size by 50% to 75% in a flat market.
  5. Forex Education

    Profit From Currency Spikes With This Memory-Of-Price Strategy Variation

    Use this single-entry strategy to capitalize on currency spikes by anticipating reversals.
  6. Stock Analysis

    Pepsi's Partnership with Sodastream

    Examine Pepsi's partnership with SodaStream, what each company hopes to gain, and learn how the latest battle in the cola wars may play out.
  7. Entrepreneurship

    Samsung and Google: A Beautiful Friendship?

    Google and Samsung have more than a hardware/software relationship. These two technology giants have collaborated time and again to define mobile's future.
  8. Entrepreneurship

    Taxes in New York for Small Business: The Basics

    Learn how small businesses are taxed in New York, and understand how tax rates vary based on whether the business is an S corporation, LLC or partnership.
  9. Professionals

    Read These Tips Before Selling Your Advisory Biz

    Here are three tips financial advisors should follow when prepping their practice for a sale to help with a smooth transaction and transition.
  10. Investing Basics

    2 Ways Hedge Funds Avoid Paying Taxes

    Learn about two strategies hedge funds use to minimize their tax liabilities. Read why some hedge funds are in the reinsurance business in Bermuda.
  1. How are joint ventures regulated in the United States?

    Joint ventures are a very specific type of business arrangement. They can be organized in several different legal structures, ... Read Full Answer >>
  2. How reliable is the Fibonacci retracement in predicting stock behavior?

    The use of the Fibonacci retracement is subjective. There is no objective method to verify one application of the Fibonacci ... Read Full Answer >>
  3. How can a swing trader use a Fibonacci retracement?

    Swing traders can use the Fibonacci retracement to determine levels of support and resistance for a price on a chart, as ... Read Full Answer >>
  4. Can I buy insurance to reduce unlimited liability in a partnership?

    Partnership insurance is actually quite common. Most of the time, partners buy insurance to safeguard against the possibility ... Read Full Answer >>
  5. What are the benefits for a company investing in a greenfield investment?

    Advantages of greenfield investments include increased control, the ability to form marketing partnerships and the avoidance ... Read Full Answer >>
  6. How does a swing trader use the stochastic oscillator?

    The stochastic oscillator is a momentum technical indicator used to indicate points of possible price reversals. Swing traders ... Read Full Answer >>

You May Also Like

Hot Definitions
  1. Black Friday

    1. A day of stock market catastrophe. Originally, September 24, 1869, was deemed Black Friday. The crash was sparked by gold ...
  2. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  3. Barefoot Pilgrim

    A slang term for an unsophisticated investor who loses all of his or her wealth by trading equities in the stock market. ...
  4. Quick Ratio

    The quick ratio is an indicator of a company’s short-term liquidity. The quick ratio measures a company’s ability to meet ...
  5. Black Tuesday

    October 29, 1929, when the DJIA fell 12% - one of the largest one-day drops in stock market history. More than 16 million ...
  6. Black Monday

    October 19, 1987, when the Dow Jones Industrial Average (DJIA) lost almost 22% in a single day. That event marked the beginning ...
Trading Center