CONCEPTUALIZATION OF FINANCIAL TRADING

Abstract

Background. Financial trading is a crucial aspect of modern economies. Nowadays it is also a field of study that has received great attention from researchers and financial institutions worldwide. At the same time, the concept of financial trading has gradually become more complex against the background of globalization and the digital economy. The purpose of the article is to scientifically and comprehensively define the concept of "financial trading." To achieve this purpose, the following tasks were done: to construct the definition of financial trading; to generalize the characteristics of the main financial trading participants (individual traders, institutional investors, high-frequency traders, market makers, brokers, and sovereign wealth funds); to create a comprehensive classification of financial trading. Methods. During this research, a seven-stap methodology of definition construction by A. Starostina and V. Kravchenko was applied, a grouping method for dividing financial trading participants into categories, and a combination of hierarchical and faceted classification methods were used. Results. Consequently, a scientific definition of financial trading (including three components: essence, content, and result), a grouping of the main participants of financial trading (systemic and investment participants) and a comprehensive classification of financial trading were suggested. Conclusions. These findings are basic for financial regulators and market practitioners seeking to improve the efficiency, stability, and inclusiveness of financial trading. For academics, this study will contribute to the future research of seeking the profitability improvement of financial investment through financial trading and exploring the perspective development of financial trading technology.