FIN346 Chapter 6

Trading System
What does SCORE stand for in the trading system?

• System on Computerized Order Routing and Execution

• System on Centralized Online Routing Execution

• Securities Computerized Online Routing Execution

• Stock Centralized Order Routing Engine

Trading System
What is the primary function of WinSCORE?

• Developing trading algorithms

• Automating stock price analysis

• Executing bulk stock orders

• Managing credit control and trade routing

Trading Hours
What are the morning trading hours for the secondary market?

• • 8:00 am - 12:00 pm

• 10:00 am - 1:00 pm

• 9:00 am - 12:30 pm

• 8:30 am - 12:30 pm

Trading Hours
What is the term for share amounts traded below a board lot?

• Unit lots

• Small lots

• Special lots

• Odd lots

Process of Share Trading

5. What is the first step in the process of share trading?

• Placing an order

• Engaging a dealer

• Opening an account

• Trade confirmation

Process of Share Trading
Which stage in share trading involves the issuance of contract notes?

• Match order

• Trade confirmation

• T+2

• After execution of the trade

Types of Transactions
What distinguishes a cash transaction in trading?

• Payment and settlement occur on the same day

• Settlement is deferred to T+2

• It uses borrowed funds

• It involves trading physical goods

Types of Transactions
Margin transactions allow customers to:

• Trade without a securities account

• Use borrowed funds to finance investments

• Settle trades over a month

• Trade without transaction fees

Margin Trading and Direct Business
Which of the following is a key term in margin trading?

• Maintenance margin

• Trading volume

• Fixed commission

• Tick size

Margin Trading and Direct Business
A direct business transaction includes which of the following?

• Automated trade matching

• Crossing between clients of different SBCs

• Foreign exchange transactions

• Derivative trading