Question

Give the deffinition of a back-to-back trade and discuss it in regards to business risk.

Answer 1

A back to back trading is an important concept in securities market. It allows the traders to trade in and making settlement of same securities multiple times in the same day. They trade and settle in the same day without any loss of days' value. Generally, it shows a profit inthe business. Often, the benefit outweights the cost and provides the profit. It happens at without any loss of value so business generally receives or sees the profit.