Investment Dictionary:

Trading Account

1. An account similar to a traditional bank account, holding cash and securities, and is administered by an investment dealer.

2. An account held at a financial institution and administered by an investment dealer that the account holder uses to employ a trading strategy rather than a buy-and-hold investment strategy.

Investopedia Says:
1. Though trading accounts are traditionally thought to hold only stocks, a trading account can hold cash, foreign cash, securities and a number of other types of investments.

2. Investors who use a number of trading strategies or have a number of brokerage accounts may separate their accounts in order to avoid confusion. One account may be a registered account for their retirement savings; another account may be a buy-and-hold account for their long-term stocks; another may be a margin account; and another may be a trading account used for conducting day-trading activities.

Related Links:
A trading system can save time and take the emotion out of trading, but adopting one takes skill and resources - learn more here. Basics Of Trading Systems
Find out the answers to some common trading questions. Background To The Trade
How do you find the right broker for your investment needs? Start by reading our broker tutorial. Brokers and Online Trading
Find out what margin is, how margin calls work, the advantages of leverage and why using margin can be risky. Margin Trading


 
 
 

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