Cash trade: Difference between revisions
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Amwelladmin (talk | contribs) (Created page with "{{anat|PB}} A transaction in a physical security. I give you cash, you give me the security. To be contrasted with a synthetic trade, where I don't give you cash, and you give...") |
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{{anat|PB}} | {{anat|PB}} | ||
A transaction | A [[transaction]] to buy or sell a physical [[security]]. I give you [[cash]], you give me the [[security]]. | ||
To be contrasted with a synthetic trade, where I | |||
To be contrasted with a [[synthetic trade]], where I ''don’t'' give you cash — instead, I pay you a rate equivalent to what I would pay to borrow that cash from you — and you give me a [[derivative]] [[exposure]] to that “[[underlying]]” [[security]]. | |||
{{Seealso}} | {{Seealso}} | ||
*[[Give up]] | *[[Give up]] | ||
*[[Synthetic prime brokerage]] | *[[Synthetic prime brokerage]] | ||
Latest revision as of 09:30, 23 August 2017
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Hedge Funds & Prime Brokerage Anatomy™
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A transaction to buy or sell a physical security. I give you cash, you give me the security.
To be contrasted with a synthetic trade, where I don’t give you cash — instead, I pay you a rate equivalent to what I would pay to borrow that cash from you — and you give me a derivative exposure to that “underlying” security.