Trading Book

A trading book is a collection of financial instruments held by a financial institution for trading purposes. These instruments can include stocks, bonds, commodities, and derivatives. Traders use the trading book to speculate on the price movements of these instruments in order to make profits. It is an essential tool for conducting stock market analysis, as traders rely on the information and data within the trading book to make informed decisions. The trading book is closely monitored and managed by risk management professionals to ensure that the institution's trading activities are conducted in a prudent and responsible manner.