Cash trade: Difference between revisions

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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 in a physical security. I give you cash, you give me the security.
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, and you give me a derivative exposure to that “underlying” 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]].


{{Seealso}}
{{Seealso}}
*[[Give up]]
*[[Give up]]
*[[Synthetic prime brokerage]]
*[[Synthetic prime brokerage]]

Latest revision as of 09:30, 23 August 2017

Prime Brokerage Anatomy™

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There is no industry standard prime brokerage agreement, so this is not so much an anatomy as a collection of resources about an amorphous subject.
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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 “underlyingsecurity.

See also