Trading Book

What Does Trading Book Mean?
The portfolio of financial instruments held by a brokerage or bank. The financial instruments in the trading book are purchased or sold to facilitate trading for their customers, to profit from spreads between the bid/ask spread, or to hedge against various types of risk.

Investopedia explains Trading Book
The trading books for large financial institutions can be worth billions of dollars.

Related Terms

Bid/Ask Spread
Hedge
Risk
Security
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