Financial Trading and Investing, Second Edition, delivers the most current information on trading and market microstructure for undergraduate and master's students. Without demanding a background in econometrics, it explores alternative markets and highlights recent regulatory developments, implementations, institutions and debates. New explanations of controversial trading tactics (and blunders), such as high-frequency trading, dark liquidity pools, fat fingers, insider trading, and flash orders emphasize links between the history of financial regulation and events in financial markets. New sections on valuation and hedging techniques, particularly with respect to fixed income and derivatives markets, accompany updated regulatory information.
In addition, new case studies and additional exercises are included on a website that has been revised, expanded and updated. Combining theory and application, the book provides the only up-to-date, practical beginner's introduction to today's investment tools and markets.
- Concentrates on trading, trading institutions, markets and the institutions that facilitate and regulate trading activities
- Introduces foundational topics relating to trading and securities markets, including auctions, market microstructure, the roles of information and inventories, behavioral finance, market efficiency, risk, arbitrage, trading technology, trading regulation and ECNs
- Covers market and technology advances and innovations, such as execution algo trading, Designated Market Makers (DMMs), Supplemental Liquidity Providers (SLPs), and the Super Display Book system (SDBK)
Please Note: This is an On Demand product, delivery may take up to 11 working days after payment has been received.
2. Financial Markets, Trading Processes, and Instruments
3. Institutional Trading
4. Regulation of Trading and Securities Markets
5. Adverse Selection, Trading, and Spreads
6. Random Walks, Risk and Arbitrage
7. Arbitrage and Hedging with Fixed Income Instruments and Currencies
8. Arbitrage and Hedging with Options
9. Evaluating Trading Strategies and Performance
10. The Mind of the Investor
11. Market Efficiency
12. Trading Gone Awry
End-of-Chapter Exercise Solutions
John Teall is a visiting professor at LUISS Business School in Rome, Italy. He is a former member of the American Stock Exchange and has served as a consultant to Deutsche Bank, Goldman Sachs, and other financial institutions.