Trade (financial instrument)

In finance, a trade is an exchange of a security for “cash”, typically a short-dated promise to pay in the currency of the country where the ‘exchange’ is located. BASICS: A financial instrument must be defined by the State (that regulates it); and it must registered with the State Regulator by the owner of the instrument (that issues it). The owner in this case is called: issuer of the financial instrument. The person requesting the instrument is called: applicant.


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