Financial Trading and Investing

A former member of the American Stock Exchange introduces trading and financial markets to upper-division undergraduates and graduate students who are planning to work in the finance industry. Unlike standard investment texts that cover trading as one of many subjects, Financial Trading and Investing gives primary attention to trading, trading institutions, markets, and the institutions that facilitate and regulate trading activities—what economists call "market microstructure." The text will be accompanied by a website that can be used in conjunction with TraderEx, Markit, StocklinkU, Virtual Trade, Vecon Lab Experiment, Tradingsim, IB Student Trading Lab, Brenexa, Stock Trak and How the Market Works.

Introduces the financial markets and the quantitative tools used in them so students learn how the markets operate and gain experience with their principal toolsHelps students develop their skills with the most popular trading simulation programs so they can reuse the book to solve day-to-day problems Stretches from investor behavior to hedging strategies and noise trading, capturing recent advances in an up-to-date reference source

Chapter 1 - Introduction to Securities Trading and Markets Chapter 2 - Financial Markets, Trading Processes, and Instruments Chapter 3 - Institutional Trading Chapter 4 - Regulation of Trading and Securities Markets Chapter 5 - Adverse Selection, Trading, and Spreads Chapter 6 - Random Walks, Risk and Arbitrage Chapter 7 - Arbitrage and Hedging with Fixed Income Instruments and Currencies Chapter 8 - Arbitrage and Hedging with Options Chapter 9 - Evaluating Trading Strategies and Performance Chapter 10 - The Mind of the Investor Chapter 11 - Market Efficiency Chapter 12 - Trading Gone Awry Mathematics Appendix Glossary End-of-Chapter Exercise Solutions Index