In trading, a book may refer to a number of different things depending on the context.
Here are some possible meanings of the term “book” in trading:
Order book
An order book is a record of all buy and sell orders for a particular security or financial instrument, organized by price level.
The order book displays the quantity and price of each order, allowing traders to see the current supply and demand for the security.
Trading book
A trading book is a portfolio of financial instruments held by a financial institution for the purpose of trading.
The trading book is separate from the institution’s banking book, which consists of financial instruments held for investment purposes.
Position book
A position book is a record of an individual trader or trading desk’s open positions in various financial instruments.
The position book may include information on the size of each position, the entry and exit prices, and the overall profit or loss on each position.
Trade book
A trade book is a record of all trades executed by a trader or trading desk over a specific period of time.
The trade book includes information on the instrument traded, the quantity, the price, and the date and time of the trade.
Summary
In summary, the term “book” in trading can refer to a number of different things, depending on the context.
These may include order books, trading books, position books, and trade books, each of which serves a different purpose in the trading process.