Life of a Trade - Part 1


This tutorial provides a detailed introduction to the trade lifecycle, the different stages of that lifecycle, and the key participants in it. The tutorial also describes how trading can be categorized by asset class and whether a trade represents a cash or derivatives market transaction. Other topics covered by the tutorial include margin trading, securities lending, high touch versus low touch trading, straight through processing (STP), and settlement cycles.


On completion of this tutorial, you will be able to:
- Identify the key stages of the trade lifecycle, including pre-trade, trade execution, trade clearing, trade settlement, and ongoing position and risk management
- Recognize that trading can be categorized by asset class, by whether it is a single position or an index position, and by whether it is a cash market or a derivatives market trade
- Identify the key participants in a trade, the role of front, middle and back offices, and market developments such as automation, straight through processing, and efforts to shorten settlement cycles

Content Highlight

Topic 1: Overview of the Trade Lifecycle
Topic 2: Asset Classes & Products
Topic 3: Market Participants & Developments

Administrative Details

Relevant Subject
Type 1 - Dealing in securities
Type 2 - Dealing in futures contracts
Type 4 - Advising on securities
Type 5 - Advising on futures contracts
Type 8 - Securities margin financing
SFC:1.00, PWMA:1.00
All Member: HKD285
Non-Member: HKD420
Staff of Corporate Member: HKD285