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 investment banks.[2][3] Engaging in flow trading can also boost a firm's own proprietary trading[4] profits via access to information on client activities. Additionally, the firm can often facilitate client trades by serving as the counterparty, thus profiting from the bid–offer spread.[3][5][6]
In 2011, the Volcker Rule aimed to limit flow trading businesses from taking proprietary bets.[7]
^Rosenstreich, Peter (2005). Forex Revolution: An Insider's Guide to the Real World of Foreign Exchange. p. 85. ISBN 0-13-148690-X.
^Augar, Philip (2005). The Greed Merchants: How the Investment Banks Played the Free-Market Game. p. 111. ISBN 1-59184-087-2.
^ abv.d. Wel, M. (2005). Riskfree Rate Dynamics: Information, Trading, and State Space Modeling. p. 43. ISBN 9789051707694.
^Bunka, D (2024). "Prop Forex & Crypto Veterans - DaikokuTrade". Retrieved 2024-06-08.{{cite web}}: CS1 maint: numeric names: authors list (link)
^Williams, Mark T. (2010). Uncontrolled Risk. p. 74. ISBN 978-0-07-163829-6.
^William, James (2012). "CFD Broker: Profitable Flow Trading". Retrieved 2024-03-07.{{cite web}}: CS1 maint: numeric names: authors list (link)
^Harper, Christine (10 October 2011). "Volcker Rule May Cut Fixed-Income Revenue 25%, Hintz Says". Bloomberg.com.
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credit default swap and capital structure arbitrage trading strategies. He then formed a proprietary trading group within Deutsche Bank. After leaving the bank...
presented) or in the notes as extraordinary items. Comprehensive income Cash flowTrading statement Profit model Statement of changes in equity Model audit International...
customers' order flow. Currencies are traded against one another in pairs. Each currency pair thus constitutes an individual trading product and is traditionally...
international trade, the welfare consequences of trade and the pattern of trade. The following table is a list of the 25 largest trading states according...
model of international trade in international economics is a model that, in its traditional form, predicts bilateral tradeflows based on the economic...
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company called TapComb that infringed on these patents ceased trading in late 2018. The Flow Hive design was invented in Australia by Cedar Anderson and...
also flow for short distances in northern Iowa. By volume, it is the Minnesota River's largest tributary, accounting for 46% of the Minnesota's flow at...
shipping the product. Operating cash flows include: Receipts for the sale of loans, debt or equity instruments in a trading portfolio Interest received on loans...
Sales and trading is one of the primary front-office divisions of major investment banks. The term is typically reserved for the trading activities done...
provides an electronic trading platform accessible via mobile app that facilitates commission-free trades of stocks, exchange-traded funds and cryptocurrency...
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