Flow trading

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A stock trading desk

In finance, flow trading occurs when a firm trades stocks, bonds, currencies, commodities, their derivatives, or other financial instruments, with funds from a client, rather than its own funds.[1]

Flow trading can be a significant source of profits for

bid–offer spread.[3][4][5]

In 2011, the Volcker Rule aimed to limit flow trading businesses from taking proprietary bets.[6]

References

  1. ISBN 0-13-148690-X
    .
  2. ISBN 1-59184-087-2
    .
  3. ^
    ISBN 9789051707694
    .
  4. ISBN 978-0-07-163829-6
    .
  5. ^ William, James (2012). "CFD Broker: Profitable Flow Trading". Retrieved 2024-03-07.{{cite web}}: CS1 maint: numeric names: authors list (link)
  6. ^ Harper, Christine (10 October 2011). "Volcker Rule May Cut Fixed-Income Revenue 25%, Hintz Says". Bloomberg.com.


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