Front Office, Middle Office & Back Office
A trade is the conversion of an order placed on the exchange which results into pay-in and
pay-out of funds and securities. Trade ends with the settlement of the order placed.
The following steps are involved in a trade’s life cycle:
1. Placing of Order
2. Risk management and routing of order
3. Order matching and its conversion into trade
4. Affirmation and Confirmation (only for institutional deals)
5. Clearing and settlement
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