Trading Assets


DEFINITION of 'Trading Assets'

A collection of securities held by a firm that are held for the purpose of reselling for a profit. Trading assets are recorded as a separate account from the investment portfolio. Trading assets may include U.S. Treasury securities, mortgage-backed securities, foreign exchange rate contracts and interest rate contracts. Trading assets include those positions acquired by the firm with the purpose of reselling in the near term in order to profit from short-term price movements.

BREAKING DOWN 'Trading Assets'

Trading assets are recorded at the fair value when they are purchased and sold. When trading assets are held by banks for other banks, they are recorded as marked-to-market, thereby adjusting to the current market value. Certain banks are required to file reports with the government and the Federal Deposit Insurance Corporation (FDIC) to report this activity.

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  1. Are 401ks FDIC insured?

    The Federal Deposit Insurance Corporation (FDIC) works as a protector for customers when banks and financial institutions ... Read Full Answer >>
  2. Does the FDIC cover identity theft?

    When a third party gains access to your bank account and conducts transactions without your consent, the FDIC does not have ... Read Full Answer >>
  3. Does the FDIC cover credit unions?

    The Federal Deposit Insurance Corporation (FDIC) does not cover credit unions. The FDIC only insures deposits in banks and ... Read Full Answer >>
  4. Does the FDIC cover business accounts?

    Bank deposits owned by corporations, partnerships, limited liability companies (LLCs), and unincorporated associations, including ... Read Full Answer >>
  5. Can working capital be depreciated?

    Working capital as current assets cannot be depreciated the way long-term, fixed assets are. In accounting, depreciation ... Read Full Answer >>
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