The Trade Lifecycle: Behind the Scenes of the Trading Process
$25.50
| Author(s) | |
|---|---|
| Format |
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| Pages |
415 |
| Published Date |
2015 |
The Trade Lifecycle by Robert P. Baker is an authoritative guide to the inner workings of modern financial markets and the complete journey of a trade from inception to settlement. Written by a seasoned industry expert, the book offers an in-depth look at the operational, technological, and regulatory processes that underpin every trade, making it an essential resource for traders, risk managers, operations staff, and financial professionals who want to understand the mechanics behind market transactions.
The book begins by explaining what a trade lifecycle is: the sequence of events that occur when a trade is initiated, processed, cleared, and eventually settled. Baker breaks this lifecycle into distinct stages, including trade execution, confirmation, clearing, settlement, accounting, and reporting. He provides a clear overview of how these processes function across asset classes such as equities, derivatives, fixed income, and foreign exchange.
A key strength of the book lies in its ability to connect the technical and operational aspects of trading with the broader market structure. Baker explains how front-office trading decisions flow into middle-office risk management and back-office settlement, highlighting the importance of efficiency, accuracy, and risk control at every stage. The book also covers critical issues such as counterparty risk, collateral management, and the growing role of technology and automation in streamlining trade operations.
Another central theme is the impact of regulation and compliance. Baker provides insight into how regulatory frameworks—from capital requirements to reporting standards—shape the way trades are processed and monitored. This ensures that readers not only understand the mechanics of trading but also the obligations that come with operating in global financial markets.
Throughout the book, Baker combines conceptual clarity with real-world examples, case studies, and practical explanations. His accessible style makes complex topics understandable without sacrificing depth, making this book a valuable reference for both new entrants and experienced professionals.
The Trade Lifecycle stands as a definitive resource for anyone who wants to master the hidden processes that keep modern markets functioning. It equips readers with the knowledge to navigate the operational side of trading with confidence and professionalism.
Contents:
- Trading
- Risk
- Understanding Traded Products – Follow the Money
- Asset Classes
- Derivatives, Structures and Hybrids
- Liquidity, Price and Leverage
- Anatomy of a Trade
- Trade Lifecycle
- Cashflows and Asset Holdings
- Risk Management
- Market Risk Control
- Counterparty Risk Control
- Accounting
- P&L Attribution
- Regulation
- nsights into the Real World of Capital Markets – Here be Dragons!
- Case Studies
- The IT Divide
- The Role of the Quantitative Analyst
- Developing Processes for New Products
- New Products
- Testing
- Data
- Reports
- Calculation
The Trade Lifecycle: Behind the Scenes of the Trading Process By Robert P. Baker pdf
16 reviews for The Trade Lifecycle: Behind the Scenes of the Trading Process
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Amirah Fernandez (verified owner) –
The book provides decent background for beginners into different aspect of trading and functions of Investment Banks.
Holden Farrell (verified owner) –
Good one
Jordan Jimenez (verified owner) –
A clear, comprehensive and great all round look at the activities within a trading organisation – useful to both those working in or outside such a company
Bentley Tran (verified owner) –
A well written step by step inside of the investment banking world.
Ryker Kerr (verified owner) –
My advice to potential buyers is to check the Table of Contents from here and look up the Wikipedia for the key topics while you are reading this book, you will get an even enhanced understanding of the Trade Lifecycle. This book could use some more details around the actual lifecycle and could do without extra topics that are covered that are not directly associated with the trade lifecycle.
I still gave it 4 stars because this book has been compiled professionally and may help a complete newcomer to this industry.
Warren Lang (verified owner) –
A unique book comprising the essential knowledge for derivatives trading and post-trade processing. A must read for everyone new to the area, especially within operations and technology.
Kylie Espinosa (verified owner) –
This book is a must read for those who carry out operational due diligence on hedge funds like me. It doesn’t assume too much prior knowledge and is easy to read. That said, it is not elementary and is brilliant at explaining the different considerations of the trade process for different instruments. I also love that it covers the processes required to support a successful trade process; compliance, business continuity planning, risk management, etc. Things that I ask managers about every day when visiting them. Highly recommended.
Tiana Richards (verified owner) –
This is the first time EVER I am writting a review (frankly for any book). I am simply too lazy to bother. However, I felt compelled to write one on this book. I am an IT person who has been working in Investment Bank for over 14 years, and have picked up financial knowledge along the way. I bought this book just to read in preparation for a job interview. I have to say it is the best value for money book I have ever bought, and I could start a library with the amount of books I have purchased over time. It literally covers everything about trade lifecycle. Not only does it do this, it covers it in a very clear, easy to follow way. I find myself reading the book, almost as a novel, as opposed to being a text book. This really is a great book for anyone who wants an overview of Trade lifecycle. It is a steal for the price.
Baylee Sutton (verified owner) –
if you work in the industry it’s too elementary.
Kassidy Vargas (verified owner) –
I bought this book with the hope of clear explanation of the trade life cycle. Plus the reviews were favorable. Difficult reading, very abstract material. I would not recommend this book for a pragmatic reader.
Magnolia Henderson (verified owner) –
Having worked with Robert in the past I purchased this book more as an act of solidarity than because I felt it would have any real relevance for me but I couldn’t have been more wrong.
After contracting in investment banking for my entire career, latterly as a senior software developer, I had always struggled with the fact that I was offered little guidance as to the instruments with which I was expected to work and the processes with which my work integrated; after reading Robert’s book I can safely say my accumulated experience of 14 years in finance has finally been given a voice.
Robert has managed to condense a lifetime of expertise and study into an eminently readable introduction into the frequently oblique world of investment banking as viewed from the perspective of an individual trade; from asset class descriptions in layman’s terms to discussions of the Greeks to an all-encompassing perspective on the multitude of potential risks engendered in a trading environment this book has provided me with a perspective that all my years in banking singularly failed to do.
Although of less relevance to me as it covered ground with which I was already comfortable I have to also mention the chapters on IT and system development which should be required reading for any Luddite business types who harbour the illusion that code writes itself.
Highly recommended.
Khalid Brady (verified owner) –
Not bad book for beginners. Don’t expect in-depth explanations.
Alayna Brooks (verified owner) –
great book
Julia Esquivel (verified owner) –
This book provides an excellent and compact overview of the investment traiding domain. The best book for IT person written by the IT guy!
Beau Larson (verified owner) –
There is a lot of information in this book about financial trading and how financial firms work. Obviously, the book was not written by a professional write; the paragraphs are not well organized. Nonetheless, the book gives a good inside look of how trading and financial jobs are done. Beware that the book primarily references UK financial market, so certain terminology are British.
Ryan Salas (verified owner) –
Perfect for new people in finance. Give a great overview of different actors, business processes, IT systems and also regulations. Does not go deep, just principal concept.