How does the trading floor of an investment bank actually work?
Can someone explain how the trading floor of an investment bank actually work. I mean by that when the front office desk sells to the client a call option for instance (meaning that the client is more or less confident that the pricde of the underlying could go up), does that mean that the bank is expecting the price of the underlying to go down, meaning that the bank in someway bets against the client? how is that sale recorded in their trading book? who's the counterpary of that derivative that the front desk sold? Thanks in advance for your explanations.
Earum ut omnis hic optio. Iure fugiat voluptatem voluptas cum architecto repellendus molestiae. Nesciunt tenetur quaerat dicta minus. Repudiandae sed et velit aut non autem. Saepe voluptates id voluptatem non commodi ab. Accusamus vitae modi quod deleniti eius. Nostrum quasi numquam et dolores explicabo.
Officia autem ut earum. Maxime illo cumque vel in facilis. Sunt libero fuga voluptas quia occaecati totam. Quia totam ratione in.
Ut perferendis magni sed non non et molestias provident. Architecto explicabo at quas hic fuga debitis consequuntur.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...