Читать книгу Fundamentals of Financial Instruments - Sunil K. Parameswaran - Страница 45

The trading industry can be classified into a buy-side and a sell-side. The buy-side consists of traders who seek to buy the services being offered by the exchange. The traders on the sell-side are those who are offering the services of the exchange. Thus, the terms buy-side and sell-side have no implications for the purchase and sale of securities. Traders on both sides of the market regularly buy and sell securities.

Of all the services offered by the exchange, the key is liquidity. The sell-side traders sell liquidity to the buy-side traders by giving them the opportunity to trade whenever they desire. The buy-side consists of individuals, investment funds, institutions, and governments that use the markets to achieve objectives like cash flow management and/or risk management. The sell-side consists of brokers and dealers who help buy-side traders to trade at their convenience.