Skip to main content
Unit of study_

FINC3014: Trading and Dealing in Security Markets

This unit is concerned with the processes which turn orders into trades in securities markets, and the forces which mould and affect both order flow and order execution. The unit provides an introduction to some fundamental ideas about market design and structure. At the end of the unit, students should be able to understand (1) how the international markets for foreign exchange, swaps, bonds and equities are organised, (2) how trading is conducted in these markets and how these transactions are cleared, (3) how the markets are regulated, if they are supervised and what risks different counterparties face in these markets. The unit aims to equip students to independently analyse international investment and financing alternatives and to estimate expected returns and costs taking into account liquidity risk, price volatility and credit risk.

Code FINC3014
Academic unit Finance
Credit points 6

At the completion of this unit, you should be able to:

  • LO1. identify the processes by which security prices come about, why trading occurs and how trading is conducted
  • LO2. discuss how financial decisions by corporations turn into trades that move prices in exchanges
  • LO3. connect the theory of corporations to the visible financial market news in the media
  • LO4. utilise your own trading strategies within practice and evaluate them with the aid of a real-time trading simulator
  • LO5. build algorithms to execute trades automatically.