Financial Trading and Investing,
Edition 3
By John L. Teall

Publication Date: 17 Oct 2022

Financial Trading and Investing, Third Edition provides a useful introduction to trading and market microstructure for advanced undergraduate as well as master’s students. Without demanding a background in econometrics, the book explores alternative markets and highlights recent regulatory developments, implementations, institutions and debates. The text offers explanations of controversial trading tactics (and blunders) such as high-frequency trading, dark liquidity pools, fat fingers, insider trading and flash orders, emphasizing links between the history of financial regulation and events in financial markets. It includes coverage of valuation and hedging techniques, particularly with respect to fixed income and derivative securities. The text adds a chapter on financial utilities and institutions that provide support services to traders and updates regulatory matters.

Combining theory and application, this book provides a practical beginner's introduction to today's investment tools and markets with a special emphasis on trading.

Key Features

  • Concentrates on trading, trading institutions, markets and the institutions that facilitate and regulate trading activities
  • Introduces foundational topics relating to trading and securities markets, including auctions, market microstructure, the roles of information and inventories, behavioral finance, market efficiency, risk, arbitrage, trading technology, trading regulation and ECNs
  • Covers market and technology advances and innovations, such as execution algo trading, Designated Market Makers (DMMs), Supplemental Liquidity Providers (SLPs), and the Super Display Book system (SDBK)
  • Includes improved pedagogical supplements, including end-of-chapter questions with detailed solutions at the end of the text, and useful appendices
  • Student resources available online:
  • Instructor resources available for request by qualified professors:
About the author
By John L. Teall, Johns Hopkins University
Table of Contents

1. Introduction to Securities Trading and Markets
2. Securities Markets
3. Financial Market Utilities and Securities Trading Support
4. Institutional Trading
5. Regulation of Trading and Securities Markets
6. Adverse Selection, Trading, and Liquidity
7. Random Walks, Risk and Arbitrage
8. Arbitrage and Hedging with Fixed Income Instruments and Currencies
9. Arbitrage and Hedging with Options
10. Evaluating Trading Strategies and Performance
11. The Mind of the Investor
12. Market Efficiency
13. Trading Gone Awry

Book details
ISBN: 9780323909556
Page Count: 576
Retail Price : £84.95

Graduate students in Finance, Business, and Economics. Advanced UG students; Professionals working in finance, financial engineering, quantitative finance, and risk management