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.
1. Chapter 1. Introduction to Securities Trading and Markets - p. 1 2. Chapter 2. Financial Markets, Trading Processes, and Instruments - p. 33 3. Chapter 3. Institutional Trading - p. 81 4. Chapter 4. Regulation of Trading and Securities Markets - p. 113 5. Chapter 5. Adverse Selection, Trading, and Liquidity - p. 145 6. Chapter 6. Random Walks, Risk, and Arbitrage - p. 169 7. Chapter 7. Arbitrage and Hedging With Fixed Income Instruments and Currencies - p. 199 8. Chapter 8. Arbitrage and Hedging With Options - p. 233 9. Chapter 9. Evaluating Trading Strategies and Performance - p. 267 10. Chapter 10. The Mind of the Investor - p. 289 11. Chapter 11. Market Efficiency - p. 325 12. Chapter 12. Trading Gone Awry - p. 369 13. Mathematics Appendix - p. 403 14. End-of-Chapter Exercise Solutions - p. 421 15. Chapter 1 - p. 421 16. Chapter 2 - p. 424 17. Chapter 3 - p. 426 18. Chapter 4 - p. 428 19. Chapter 5 - p. 431 20. Chapter 6 - p. 435 21. Chapter 7 - p. 437 22. Chapter 8 - p. 446 23. Chapter 9 - p. 452 24. Chapter 10 - p. 459 25. Chapter 11 - p. 464 26. Chapter 12 - p. 470 27. Glossary - p. 473 28. Index - p. 489
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.
1. Chapter 1. Introduction to Securities Trading and Markets - p. 1 2. Chapter 2. Financial Markets, Trading Processes, and Instruments - p. 33 3. Chapter 3. Institutional Trading - p. 81 4. Chapter 4. Regulation of Trading and Securities Markets - p. 113 5. Chapter 5. Adverse Selection, Trading, and Liquidity - p. 145 6. Chapter 6. Random Walks, Risk, and Arbitrage - p. 169 7. Chapter 7. Arbitrage and Hedging With Fixed Income Instruments and Currencies - p. 199 8. Chapter 8. Arbitrage and Hedging With Options - p. 233 9. Chapter 9. Evaluating Trading Strategies and Performance - p. 267 10. Chapter 10. The Mind of the Investor - p. 289 11. Chapter 11. Market Efficiency - p. 325 12. Chapter 12. Trading Gone Awry - p. 369 13. Mathematics Appendix - p. 403 14. End-of-Chapter Exercise Solutions - p. 421 15. Chapter 1 - p. 421 16. Chapter 2 - p. 424 17. Chapter 3 - p. 426 18. Chapter 4 - p. 428 19. Chapter 5 - p. 431 20. Chapter 6 - p. 435 21. Chapter 7 - p. 437 22. Chapter 8 - p. 446 23. Chapter 9 - p. 452 24. Chapter 10 - p. 459 25. Chapter 11 - p. 464 26. Chapter 12 - p. 470 27. Glossary - p. 473 28. Index - p. 489
