blog Bonorum et Malorum

Two Free Simulations For You to Understand the Life Cycle of a Trade

Written by Fmi.Online

If you’re looking to work in investment banking, one of the divisions you can choose is global markets. This division enables a bank’s clients to trade financial products, raise capital, and manage risk. This can include primary and secondary markets (rates, credit, foreign exchange, fixed-income, securitisation and treasury). 

Within the global markets division, you will be required to understand the trade life cycle. It is the lifeblood of this division. Hence, in this article, we bring you two free simulations to help you take a peek into the life cycle of a trade. 

What is the life cycle of a trade

A trade’s life cycle includes all the steps involved in a trade, right from the time an order is placed to its price fluctuations to its validation all the way to the settlement of the trade. This is the central activity for stock exchanges, capital markets, hedge funds, investment banks and other financial institutions. If you are planning to work in any of these domains, you must be well-versed in this life cycle.

These two trade simulations are particularly beneficial for anyone aspiring to build a career path in the global markets division. Whether you work in the front office, as a technologist, or in risk management, compliance and internal audit, these real-time simulations will sharpen your expertise. You will also be able to understand:

  • how various teams in this division collaborate together
  • which parties are involved in the trade life cycle, such as custodians, CSDs and exchanges
  • the role of technology in executing trades on exchanges and OTC markets
  • the various terminologies of the trade life cycle such as trade capture, clearing, settling, and trade enrichment
  • the role of infrastructure divisions, such as technology, risk, and compliance in the trade life cycle
  • post trade responsibilities that investment banks are responsible for, such as reporting, valuation, and accounting

Two free simulations on life cycle of a trade

For example, in this simulation, you will be able to pair the terms central to the lifecycle of a trade with its meanings. This innovative way of practising and perfecting the terms increases their memorability and keeps the user interested. For example, you might be given a definition such as: standard settlement instructions added to transactions, and you would need to match it with the right term that it is describing. For example, in this case, it is trade enrichment. You would be required to keep going and practice as many times as you like till you know all the correct answers.

Conclusion

More Articles

What does an investment banking intern at top banks do on a daily basis?

An internship will involve working for long hours in a dynamic environment, with high standards for accuracy and work ethic. You must be aware of the practical workings of the industry to cope with your work

Read more
News

What are the latest investment banking internship hiring trends in 2023

To stay relevant and competitive, investment banks have adapted new hiring practices in the technology-dominated, post-COVID world. These hiring trends were visible across financial institutions. While in the previous calendar year institutes were worried about staffing and labour shortage, banks were predicting a long struggle for employees to continue to post the COVID-19 pandemic, according […]

Read more
Investment Banking

How to get the right investment banking certification

The lucrative growth prospects of investment banking make it a brutally competitive industry. Having done a relevant investment banking course improves your odds of breaking into the industry. However, investment banking courses come in different shapes, sizes and forms. The elementary investment banking courses provide students with an overview of the industry and its functions, […]

Read more
Investment Banking

What are the rarest skills the world’s top investment bankers are looking for?

Investment bankers are responsible for heavy corporate transactions like mergers, acquisitions, IPOs, fundraising, and investment advisory. A career in investment banking is demanding, highly competitive and challenging. The right skillset, however, can help you build a successful career in investment banking by making the job easier and more efficient. In this article, we will explore […]

Read more

How can you land an investment bank internship

Top investment banks offer investment banking internship programs, each year, hiring graduates to work for 3-4 months in their offices. Through these internships, interns get first-hand experience working in an investment bank, gain an opportunity to network with other bankers, and improve their resumes. More importantly, aspiring investment bankers can see if they have the […]

Read more
Interview Prep

What you might be lacking in your IB interview prep

Going through the fundamentals of finance, working on DCF calculations, and preparing financial models are some of the more obvious things that an aspiring investment banker prepares for before interviewing for a job at a top investment bank. But what about the subtle nuances that could determine whether you will land a job or not? […]

Read more
Investment Banking

You should be aiming for these 5 investment banks this year?

It is vital to start your career in investment banking with the right organisation, one that not only offers a healthy corporate culture but also supports your personal goals. Some of the critical aspects which you must consider while selecting an investment bank are corporate culture, compensation, core areas of focus, size of operation, history […]

Read more
Investment Banking

Which Investment Banking courses are a must-grab for aspiring investment bankers

Considering the lucrative prospects and growth possibilities involved, investment banking is a tough industry to crack. However, by following a few steps you can improve your odds. One such step is having done relevant finance and accounting courses. It will allow you to demonstrate better knowledge in the domain than your peers, which will set […]

Read more
Investment Banking

What is the most popular job title in investment banking this year?

Investment banking offers limited job titles and functions on a strict hierarchy, common globally. A typical hierarchy starts with investment banking analysts, followed by IB Associates, Vice President, Senior Vice President, all the way to Managing Director and CEO. Global investment banks, functioning in multiple countries, often have different job titles, however, the job descriptions […]

Read more
Investment Banking

How can an investment banking course help you land a job in 2023? 

With consolidation in global markets and alterations in the supply chain, businesses are exploring the path of M&A to exploit synergies with their global counterparts and achieve efficiency. This has led to an increase in corporate transactions, fuelling the demand for investment bankers. The size of the global investment banking industry is estimated to be […]

Read more
Our Courses are designed to boost your career

Launch your career with Fmi’s Learning Pathway

Choose a learning pathway that best meets your needs and ambitions. Not sure which Fmi learning pathway is right for you? Explore our CareerBuddy videos for help and advice.

Investment banking pathway

Investment banking pathway

Monthly Subscription
  • courses-clock60+ hours
  • courses-desktop9 courses

Investment banking offers many exciting career opportunities for students. From Financial Analysts to Investment Management, and Sales & Trading to a wide range of roles in infrastructure such as IT, Risk or Compliance. This pathway is designed to help you understand the investment banking industry, the roles investment banks are recruiting for, and most importantly, help you to develop the practical skills you need to get into the industry and your preferred role whether this be as part of a school leaver, intern or graduate program.

FMI Online Student join-student-img2 FMI Online Student
55,000+ students currently enrolled
Global markets pathway

Global markets pathway

Monthly Subscription
  • courses-clock70+ hours
  • courses-desktop10 courses

Global markets provide a range of important products and services to corporates, institutions and governments worldwide from executing trades and managing risk to providing quality research content. A key business area in all investment banks, global markets offers a wide range of career paths for students to consider across all functions and at all levels from school leavers to internships through to graduate programs.

FMI Online Student join-student-img2 FMI Online Student
85,000+ students currently enrolled
Asset management pathway

Asset management pathway

Monthly Subscription
  • courses-clock50+ hours
  • courses-desktop8 courses

The asset management industry is a global industry worth over 100 trillion US dollars. It plays a crucial role in managing the assets of retail and institutional investors, offering a wide range of exciting careers in doing so. If you’re looking to forge a career in asset management, our Asset management pathway is perfect for you. We help you build the skills all asset managers are looking for and explore everything you need to know about the industry and the wide range of roles available in the sector

FMI Online Student join-student-img2 FMI Online Student
100,000+ students currently enrolled