Trading Desk

What is a 'Trading Desk'

A trading desk is a desk where transactions for buying and selling securities occur. Trading desks can be found in most organizations (banks, finance companies, etc.) involved in trading investment instruments such as equities, fixed-income securities, futures, commodities and foreign exchange. A trading desk provides traders with access to instantaneous trade executions. Also known as "dealing desk".

BREAKING DOWN 'Trading Desk'

Trading desks can be either large or small depending on the organization and are occupied by licensed traders, usually specializing in trading one particular type of investment product (e.g. forex traders, commodities traders, stock traders, etc.). The instantaneous trade executions can be particularly important for day traders looking for arbitrage opportunities that usually last only minutes or even seconds.

RELATED TERMS
  1. Dealing Desk

    In foreign currency markets, the location of a financial institution's ...
  2. No Dealing Desk

    A way of forex trading that provides immediate access to the ...
  3. Desk Trader

    A trader who is restricted to instituting trades for a firm's ...
  4. Exchange-Traded Commodity (ETC)

    What an exchange-traded commodity (ETC) is, and how it works. ...
  5. Proprietary Trading

    When a firm trades for direct gain instead of commission dollars. ...
  6. Commodity Trader

    Unlike stock traders, who buy and sell equities, commodity traders ...
Related Articles
  1. Investing

    The Different Trading Desks of an Investment Bank

    Learn about trading desks at an investment bank. Gain an understanding of how these trading desks are split among market sectors.
  2. Trading

    An Introduction To Day Trading

    This article will take an objective look at day trading, who does it and how it is done.
  3. Markets

    Top Day Trading Instruments

    Day trading is an intense and often appealing activity. Investopedia provides the list of top financial instruments for day trading.
  4. Trading

    Trader vs Investment Banker: Which Job Is Best For You?

    Thinking of a career as an investment banker or a trader? Then you'd better know the difference!
  5. Investing

    Introduction - Day Traders

    In this tutorial, we will examine the very short-term trading style known as day trading. In particular, we will show how the trader can create a winning combination by using particular strategies ...
  6. ETFs & Mutual Funds

    How is an ETC different from an ETF? (IAU)

    An exchange traded commodity (ETC) has many similarities to an exchange traded funded (ETF), but also a few differences.
  7. Investing

    Introduction to Options Types

    Options are often the bread and butter of day traders. Here are some of the more common types of options.
  8. Financial Advisor

    A Day In The Life Of A Day Trader

    Day trading has many advantages and, while we often hear about these perks, it's important to realize that day trading is hard work.
  9. Trading

    Forex Trading: A Beginner's Guide

    Learn about the forex market and some beginner trading strategies to get started.
  10. Trading

    What is the Difference Between Institutional Traders and Retail Traders?

    The differences between retail and institutional traders lie in the size of the trade, level of sophistication, and the speed of transactions.
RELATED FAQS
  1. Can anyone buy and sell stocks in stock market?

  2. Can commodities also be investments?

    Learn about the commodities trade and several different ways investors may participate. Find out about some of the advantages ... Read Answer >>
  3. What is the difference between investing and trading?

    Investing and trading are two very different methods of attempting to profit in the financial markets. The goal of investing ... Read Answer >>
  4. Who sets the price of commodities?

    Commodities are extremely important as they are essential factors in the production of other goods. A wide of array of commodities ... Read Answer >>
  5. How do I use the news to find arbitrage opportunities?

    Learn what risk arbitrage trading is and how this type of arbitrage trading opportunity is available to individual retail ... Read Answer >>
  6. How can electricity be traded as a commodity by an individual investor?

    Learn the characteristics unique to electricity trading as a commodity and how investors can trade electricity futures on ... Read Answer >>
Hot Definitions
  1. Diversification

    A risk management technique that mixes a wide variety of investments within a portfolio. The rationale behind this technique ...
  2. European Union - EU

    A group of European countries that participates in the world economy as one economic unit and operates under one official ...
  3. Sell-Off

    The rapid selling of securities, such as stocks, bonds and commodities. The increase in supply leads to a decline in the ...
  4. Brazil, Russia, India And China - BRIC

    An acronym for the economies of Brazil, Russia, India and China combined. It has been speculated that by 2050 these four ...
  5. Brexit

    The Brexit, an abbreviation of "British exit" that mirrors the term Grexit, refers to the possibility of Britain's withdrawal ...
  6. Underweight

    1. A situation where a portfolio does not hold a sufficient amount of a particular security when compared to the security's ...
Trading Center