The Benefits and Risks of Asset Trading

Asset trading can be a complex and potentially lucrative way to grow your wealth, but it's essential to understand the benefits and risks involved.

One of the main benefits of asset trading is the potential for high returns on investment, as seen in the 20% annual returns on some assets.

However, asset trading also carries significant risks, including market volatility, which can result in losses of up to 50% in a single day.

Careful research and planning are crucial to mitigating these risks and making informed investment decisions.

For your interest: Bitcoins Trade Investment

Asset trading platforms have come a long way in providing seamless and unified experiences for traders. They offer a fully integrated platform for true Straight-Through Processing (STP), where all trade data is accessible in one place with a single sign-on.

This integration is key in reducing errors and increasing efficiency. A fully customisable platform allows traders to track their data positions and performance in real-time, with flexible reconciliations covering all counterparties.

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Some platforms, like LSEG TORA's Digital Assets, provide a pioneering institutional crypto trading platform with unrivalled functionality. This includes access to all major crypto exchanges and OTC providers, sophisticated crypto trading algorithms, and real-time and historical P&L tracking.

Here are some features of digital asset trading platforms:

A unified STP platform can streamline your asset trading experience. It provides a single, integrated solution for all your trade data, allowing you to access everything in one place with a single sign-on.

Our platform offers advanced commission, cost, and fee schedule management, ensuring that you're always up-to-date on your financial obligations. Two-way integration with leading trade matching providers is also available, enabling seamless communication and trade execution.

With our platform, you can block formation and allocation, as well as auto trade pairing and matching at block and allocation levels. This helps reduce errors and increases efficiency in your trading operations.

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Here are some of the key features of our unified STP platform:

By leveraging our unified STP platform, you can simplify your trading operations and focus on making informed investment decisions.

Our stock borrow feature is a game-changer for traders. It streamlines the short sell process to a single click, reducing direct trading impact and operational costs.

The eLocate function within our OEMS makes this possible. It's integrated with all major broker stock lending desks.

One click is all it takes to initiate a short sell, thanks to eLocate's automation and simplification. This reduces the complexity and hassle of the stock borrow process.

Here are the benefits of our stock borrow feature at a glance:

Our quantitative team is a crucial part of our asset trading platforms, working to improve execution methodology.

We utilize an algo ranking system built on a regression model using machine learning, which is a sophisticated approach to analyzing complex data.

Our team selects significant and intuitive factors to inform their model, ensuring that it's based on real-world data and market conditions.

This approach enables us to provide real-time recommendations that reflect the current market landscape.

Our quantitative team's efforts are supported by pre- and post-trade transaction cost analysis, which helps us refine our strategies and optimize performance.

By continuously monitoring and adapting to market conditions, we're able to deliver better results for our clients.

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A cross trade is a practice where buy and sell orders for the same asset are offset without recording the trade on the exchange. This type of trade is not permitted on most major exchanges.

There are two main types of cross trades. One is where a broker executes matched buy and sell orders for the same security across different client accounts and reports them on an exchange. The other is where a trade doesn't get recorded through the exchange, and one or both clients may not get the current market price available to other market participants.

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Cross trades are typically allowed in select situations, such as when both the buyer and the seller are clients of the same asset manager and the price of the cross trade is considered to be competitive at the time of the trade.

Here are some key facts about cross trades:

Cross trades can be controversial because they may undermine trust in the market. They can also be used to 'paint the tape,' a form of illegal market manipulation.

Order and execution management is a crucial aspect of asset trading, and TORA's pioneering multi-asset cloud-based OEMS offers state-of-the-art solutions for all your trading needs. TORA's OEMS provides a comprehensive suite of features for execution management, order management, post trade, reporting, transaction cost analysis, compliance, rebalancing, pairs trading, and stock borrow.

You can access a broad network of brokers and venues via TORA FIXNet and other major FIX networks, giving you flexibility to suit your trading workflows. TORA's OEMS also offers a powerful alerts engine for market and order monitoring, keeping you informed and in control.

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Here are some key features of TORA's execution management:

Execution management is a crucial aspect of order and execution management, allowing you to access the very latest multi-asset broker algos and trade across a variety of asset classes such as global equities, FX, derivatives, and fixed income.

You can expect a seamless trading experience with an easy-to-use interface that offers unmatched flexibility to suit your trading workflows. This interface also provides an on-screen audit trail of all trades and actions made.

With execution management, you can access a broad network of brokers and venues via TORA FIXNet and other major FIX networks. This gives you the freedom to trade with multiple brokers and venues, expanding your trading opportunities.

Execution management also features a powerful alerts engine for market and order monitoring, keeping you informed of any changes or updates. Additionally, you can access best-in-class proprietary pairs trading algo suite and the option to use FX auto-hedging.

Here are some key features of execution management:

Transaction Cost Analysis (TCA) is a powerful tool for portfolio managers and traders to optimize their execution strategies and reduce costs. It provides real-time, actionable analytics that can be customized to show the data that matters most to your firm.

LSEG TORA's clients benefit from both post-trade and pre-trade TCA, as well as broker algo recommendations. This means you get a complete picture of your trading costs and can make informed decisions to improve your performance.

With TCA, you can adjust analytics parameters on-the-fly to see the data you care about. This allows you to focus on the metrics that drive performance and make data-driven decisions.

Real-time TCA data can be delivered to portfolio managers and traders across the order life cycle. This enables them to take action quickly and route trades to venues with better fill quality.

Here are some key benefits of TCA:

By leveraging TCA data, you can achieve MiFID II best execution compliance. This involves using integrated pre-trade and intra-day analytics to drive execution strategy selection and capture the entire process in a best-execution audit trail.