9. Trading
This chapter looks at the buying and selling of goods and at the value of these goods with respect to changing market conditions. Using the experience of building a trading system for a bank, the chapter looks at buying and selling from both angles, where the bank buys and sells the same goods. The bank has to understand the value of the net effect of these trades in different circumstances.
Each trade is described by a contract (9.1). The contract can either buy or sell goods and is useful for businesses that need to track both directions of deals. We can look at the net effect of a number of contracts by using a portfolio (9.2). We design portfolios so we can assemble them easily to select contracts in different ways. We give the ...
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