Trading Account


DEFINITION of 'Trading Account'

1. An account similar to a traditional bank account, holding cash and securities, and is administered by an investment dealer.

2. An account held at a financial institution and administered by an investment dealer that the account holder uses to employ a trading strategy rather than a buy-and-hold investment strategy.


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BREAKING DOWN 'Trading Account'

1. Though trading accounts are traditionally thought to hold only stocks, a trading account can hold cash, foreign cash, securities and a number of other types of investments.

2. Investors who use a number of trading strategies or have a number of brokerage accounts may separate their accounts in order to avoid confusion. One account may be a registered account for their retirement savings; another account may be a buy-and-hold account for their long-term stocks; another may be a margin account; and another may be a trading account used for conducting day-trading activities.

  1. Directional Trading

    Trading strategies based on the investor’s assessment of the ...
  2. Cleared Funds

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  3. Mobile Trading

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  4. Trading Platform

    Software through which investors and traders can open, close ...
  5. Cash Account

    A regular brokerage account in which the customer is required ...
  6. Account

    1. An arrangement by which an organization accepts a customer's ...
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