How the Trading Floor Really Works [Hardcover]

Trading floors have always fascinated people, but few understand the role they play in the world of finance today. Though markets rise and fall every day, the drivers of those are rarely explored. Those who understand the dynamics of trading floors will better understand the dynamics of global financial markets. This book reveals the key players on the floor, their roles and responsibilities, how they serve their clients, and how it all impacts the markets. It also explains important terminology, explains the world of trading both cash and derivatives, and much more.

Includes a foreword by Gillian Tett, author of Fool's Gold: How Unrestrained Greed Corrupted a Dream, Shattered Global Markets and Unleashed a Catastrophe.

Terri Duhon (www.terriduhon.co) is a financial market expert who in 2004 founded B&B Structured Finance Ltd, which provides expert consulting and financial markets training . Her time on the trading floor has been documented in the book Fool's Gold as well as by PBS's Frontline.

Preface xiii

Why I Wrote this Book xiii

What this Book Does and Does Not Do xiv

Who this Book Is For xiv

Finally, Some Key People in the Process of Writing this Book xv

All Feedback Welcome! xv

Women on the Trading Floor . . . Really? xvii

CHAPTER 1 What Are Financial Markets? 1

Debt Markets 4

Equity Markets 11

Other Asset Classes 21

Derivative Markets 22

Conclusion 26

Discussion Questions 27

CHAPTER 2 What Role Do Banks Pl˜